The federal government established the Fair Credit Reporting Act on April 25, 1971 so as to protect consumers against having inaccurate, misleading or obsolete information included in their credit reports. The intent in this law was that the credit bureaus should operate in a reasonable and fair manner when they work with consumers.
The Fair Credit Reporting Act (FCRA) gives you a list of procedures and rights so that you’ll be able to clear negative information off of your credit report and reestablish your credit worthiness. This is true, by the way, regardless of your past credit history. As you understand your rights and use this to your advantage, you can actually remove collection accounts, late payments, judgments, bankruptcy filings, charge-offs, and other negative information from your files, and you can do it permanently.
The first step is to obtain copies of your credit reports from each of the major credit bureaus. You can find the address of your local credit bureau in the yellow pages under “Credit-Reporting Agencies.” If you have been denied credit within the past 60 days, you can obtain a free copy of your report by enclosing a photocopy of the denial letter along with your request. Be sure to include your full name, date of birth, Social Security number, and addresses for the past five years. If you have not been denied credit within the last 60 days, you may purchase a copy of your report from each credit bureau. In California, for example, the cost for a copy of your report is $8 from each of the major bureaus. The cost may vary in other states.
Besides asking for your credit report by mail, you can also ask for it in person, simply by reviewing your file. To do this, you can schedule an appointment by calling the bureau you want to see the report from and scheduling one. If you wish, you can also bring one other person with you of your choosing. It’s your right within the law to do this.
You can also request a credit report by mail, and if you do, you should receive a copy within three weeks. Along with it, you should also receive an explanation of the various abbreviations encodes the report contains. According to the Fair Credit Reporting Act, you have the right to challenge any remark on your report that you think is incomplete or inaccurate. Those items must be investigated by the credit bureau within a reasonable period of time, usually about 30 days. If it’s found that this information is somehow inaccurate, incorrect, out of date, or can’t be verified in longer, it has to correct or take the information off your file.
If the bureau does not respond to your initial dispute within a “reasonable time,” follow up with another letter. This time, demand that the bureau respond to your dispute immediately to prevent your being forced to take legal action. Give them about two weeks to comply and be sure to maintain copies of all correspondence.
If the credit bureau in question still refuses to investigate legitimate dispute challenges, and therefore are in violation of your rights, you can send them a final letter demanding that they follow through and meet your request. When you do this, send copies of your original request and of your previous letter to your local attorney general’s office and the Federal Trade Commission, plus of course to the bureau you’re dealing with.
Related posts:
