Chapter 5: Consumer Rights and Responsibilities

While it is the credit bureaus’ responsibility to report truthful and timely information, yours is to keep on top of what is being reported about you, so you can clear up damaging errors. Unfortunately, identity theft is also a reality, and while the bureaus must do their part to ensure accuracy, it is in your favor to spot and dispute fraud early.

Fair Credit Reporting Act (FCRA)
Credit bureaus must comply with the FCRA. This law is designed to promote accuracy, fairness, and privacy of information in your credit file:

• If you are denied credit, insurance or employment because of what is on your credit report, you may get a free report from the bureau they used within 60 days.
• You can dispute inaccuracies, and the bureau has 30 days to investigate the item.
• Derogatory information that is outdated or unverifiable cannot be reported.
• While lenders and insurers may use the information in your credit file to market their products, you have the right to opt out of these offers by calling 1-888-5-OPTOUT (1-888-567-8688).
• Only those with a need recognized by the FCRA (usually to consider an application with a creditor, insurer, employer, landlord, or other business) may access your file.
• Employers and prospective employers can only access your report with your written consent.
  You can seek damages in a court of law if the FCRA is violated.

The Fair and Accurate Credit Transactions Act
The Fair and Accurate Credit Transactions Act ammends the FCRA and is an important tool in the fight against identity theft. It gives you many powerful rights:

• You may receive a free copy of your credit report once a year.
• You may receive additional free reports if identity theft is suspected.
• You may block fraudulent information from appearing on your credit reports.
• Identity theft victims have access to business records that list an identity thief’s fraudulent transactions.
• Credit reporting agencies must ensure that all credit requests are legitimate after a credit report has been flagged for suspected identity theft.
• Active duty military personnel may place special alerts on their files when they are deployed overseas.
• Only the last five credit card number digits may be listed on store receipts.
• Lenders and credit agencies must take action even before an identity theft victim is aware of the crime.
• Debt collectors must inform a creditor of fraudulent information.

The Federal Trade Commission regulates these laws.

Protect Yourself Against Identity Theft
Identity theft is a quickly growing crime, and can be highly destructive to a your credit history and credit report. It is essential that you protect yourself against it from occurring and know what to do if you become a victim. Check your credit report regularly to make sure all of the accounts and balances are yours. Some victims of identity theft have fraudulent activity going on for years before they even realize it. The longer the problems have been going on, the harder it will be to get them resolved.

Resolve ChexSystems Issues
Many financial institutions use ChexSystems reports to determine whether to offer you a checking or passbook savings/share account. These reports list evidence of closed accounts and checks returned for insufficient funds. A poor account history will make getting future accounts difficult. Information is evident for five years, even if you have repaid a “bad” check. You can get a free copy of your ChexSystems report and dispute inaccuracies. If the negative information is true but you have a good reason for the problem, you may also add a 100-word statement to explain your side of the story.

Resources

• Annual Credit Report Request Service
  P.O. Box 105281, Atlanta, GA 30348-5281
  877-322-8228
  www.annualcreditreport.com
  
  
• Experian
  P.O. Box 2104, Allen, TX 75013-2104
  888-397-3742
  www.experian.com
  
  
• TransUnion
  P.O. Box 390, Springfield, PA 19064-0390
  800-916-8800
  www.transunion.com
  
  
• Equifax
  P.O. Box 105783, Atlanta, GA 30348
  800-685-1111
  www.equifax.com
  
  
• ChexSystems
  12005 Ford Road, Suite 600, Dallas, TX 75234-7253
  (800) 428-9623