|
The Fair Credit Reporting Act, also referred to as FCRA, is a set of laws that form the basis for consumer credit rights in the United States. It is meant to protect consumers from inaccurate credit reporting and keep their financial information private. In 2003 the Fair and Accurate Credit Transactions Act was passed, or FACTA, amending the FCRA and giving consumers greater access to their credit report. The FACTA also calls for several new red flag rules involving implementing new identity theft protection procedures and requiring financial institutions to be more forthcoming.
What You Need to Know About it
Of course, the FCRA and FACTA are full of all kinds of law speak, so what do you really need to know about the laws? First off, they are there to help you and everyone should definitely take advantage of the opportunities they provide. One of the most important things to take away from the FACTA is the ability to request a free copy of your credit report from each of the three major reporting agencies (Experian, TransUnion, and Equifax) every year. By viewing your report from each company, you have free access to your credit report three times a year. You can view your credit report whenever you want as well, but the bureaus typically charge a monthly fee for access. According to the FACTA, you can also request a free copy of your report from any company that refuses you for credit, employment, or insurance within sixty days. Another important aspect of the FCRA is that it gives you the power to report any mistakes in your credit report that credit bureaus, lenders, landlords, and lenders are required to fix. If you’re worried about the potential for identity theft, the FCRA and FACTA allow you to place a fraud alert on your credit report. A fraud alert is a type of warning to would-be creditors that they should contact you before approving any new accounts or loans under your name. It should remain on your report for 90 days and remove you from mailing lists for those pesky pre-approved credit card offers. Since the three major credit bureaus don’t always communicate well, you should contact each of them about placing a fraud report. Also an important part of the Fair Credit Reporting Act, information providers are required to notify you when they send negative information to a credit bureau regarding. All in all, the FCRA and FACTA are major steps towards protecting consumer privacy and giving you power over your credit report.
Additional Resources:
|
