Understanding the Law of Fair Credit Reporting

The U.S. government established a law called the Fair Credit Reporting Act (commonly known as FCRA). This law regulates what can be reported on our credit report, you can see our credit history, and much, much more.

These are the main rights of consumers, the Fair Credit Reporting Act provides:

1) The law gives consumers the right to see what's included in your credit report. Previously, the credit reporting agencies have been sharingthe consumer credit history with financial institutions and consumers in general have been off the circuit. The law creates greater transparency in what they say about us as consumers, allowing us to receive credit reports.

2) The FCRA also very clear about who can access our reports and who is not. Not everyone is allowed to do a credit check on you. The FCRA mandates that a company must have a clear purpose eligible until they have the right to pull your credit history. Hereis a list of potential people who may be able to pull your credit report under certain circumstances:

a. Lenders: Each time you apply for a loan, the lender will give potential or credit card you can get your credit report.

b. utilities, public service providers and mobile phone companies may be able to run a credit check on you when you apply for a new service. Why extend a monthly service, they want to make sure you have a good payment historytheir debts.

c. Employers, landlords, and all pictures will be able to check your credit if you apply for a job, an apartment or a new policy.

d. A court can also issue a subpoena for your credit history when such a claim. In addition, an agency of child support have the right to pull your credit report for a parent to establish the capacity to make child support payments.

e. Remember that you have the right to review your credit report at any time. Not never a penalty to pull your credit report.

3) The FCRA also gives us the right to accurate credit reports. This means that if there are errors or fraud in its report, the credit bureaus and creditors have a legal responsibility to eliminate the errors once they are alerted to them. You are legally allowed to give wrong information in his report and to receive a response from the office (within 30-45 days) to address their concerns.

An amendment to the FCRA is> Fair and Accurate Credit Transactions Act (FACTA also called the act or fact). The law gives consumers the right to a free credit report from each of the three credit bureaus (TransUnion, Equifax and Experian) each year.