Facts for Consumers from the Federal Trade Commission

Fair Credit Reporting -- February 1992

If you've ever applied for a charge account, a personal loan, 
insurance, or a job, someone is probably keeping a file on you. 
This file might contain information on how you pay your bills, or 
whether you've been sued, arrested, or have filed for bankruptcy.
The companies that gather and sell this information are called 
"Credit Reporting Agencies," or "CRA's."  The most common type of 
CRA is the credit bureau. The information sold by CRA's to 
creditors, employers, insurers, and other businesses is called a 
"consumer report." This report generally contains information 
about where you work and live and your bill-paying habits.

In 1970, Congress passed the Fair Credit Reporting Act to give 
consumers specific rights in dealing with CRA's. The Act protects 
you by requiring credit bureaus to furnish correct and complete 
information to businesses to use in evaluating your applications 
for credit, insurance, or a job.

The Federal Trade Commission enforces the Fair Credit Reporting 
Act. Here are answers to some questions about consumer reports 
and CRA's.

How do I locate the CRA that has my file?

If your application was denied because of information supplied by 
a CRA, that agency's name and address must be supplied to you by 
the company you applied to. Otherwise, you can find the CRA that 
has your file by calling those listed in the Yellow Pages under 
"credit" or "credit rating and reporting." Since more than one 
CRA may have a file about you, call each one listed until you 
locate all agencies maintaining your file.

Do I have the right to know what the report says?

Yes, if you request it. The CRA is required to tell you about 
every piece of information in the report, and in most cases, the 
sources of that information. Medical information is exempt from 
this rule, but you can have your physician try to obtain it for 
you. The CRA is not required to give you a copy of the report, 
although more and more are doing so. You also have the right to 
be told the name of anyone who received a report on you in the 
past six months. (If your inquiry concerns a job application, you 
can get the names of those who received a report during the past 
two years.)

Is this information free?

Yes, if your application was denied because of information 
furnished by the CRA, and if you request it within 30 days of 
receiving the denial notice. If you don't meet these 
requirements, the CRA may charge a reasonable fee.

What can I do if the information is inaccurate or incomplete?

Notify the CRA. They're required to reinvestigate the items in 
question. If the new investigation reveals an error, a corrected 
version will be sent, on your request, to anyone who received 
your report in the past six months. (Job applicants can have 
corrected reports sent to anyone who received a copy during the 
past two years.)

What can I do if the CRA won't modify my report?

The new investigation may not resolve your dispute with the CRA. 
If this happens, have the CRA include your version or a summary 
of your version of the disputed information in your 
file and in future reports. At your request, the CRA also will 
show your version to anyone who recently received a copy of the 
old report. There is no charge for this service if it's requested 
within 30 days after you receive notice of your application 
denial. After that, there may be a reasonable charge.

Do I have to go in person to get the information?

No, you also may request information over the phone. But before 
the CRA will provide information, you must establish your 
identity by completing forms they will send you. If you do wish 
to visit in person, you'll need to make an appointment.

Are reports prepared on insurance and job applicants different?

If a report is prepared on you in response to an insurance or job 
application, it may be an investigative consumer report. These 
are much more detailed than regular consumer reports. They often 
involve interviews with acquaintances about your lifestyle, 
character, and reputation. Unlike regular consumer reports, 
you'll be notified in writing when a company orders an 
investigate report about you. This notice also will explain your 
right to ask for additional information about the report from the 
company you applied to. If your application is rejected, however, 
you may prefer to obtain a complete disclosure by contacting the 
CRA, as outlined in this brochure. Note that the CRA does not 
have to reveal the sources of the investigative information.

How long can CRA's report unfavorable information?

Generally, seven years. Adverse information can't be reported 
after that, with certain exceptions:

l 	bankruptcy information can be reported for 10 years;

l 	information reported because of an application for a job 
with a salary of more than $20,000 has no time limitation;

l 	information reported because of an application for more than 
$50,000 worth of credit or life insurance has no time limitation;

l 	information concerning a lawsuit or a judgment against you 
can be reported for seven years or until the statute of 
limitations runs out, whichever is longer.

Can anyone get a copy of the report?

No, it's only given to those with a legitimate business need.
Are there other laws I should know about?

Yes, if you applied for and were denied credit, the Equal Credit 
Opportunity Act requires creditors to tell you the specific 
reasons for your denial. For example, the creditor  must tell you 
whether the denial was because you have "no credit file" with a 
CRA or because the CRA says you have "delinquent obligations." 
This law also requires creditors to consider, upon request, 
additional information you might supply about your credit 
history.

You may wish to obtain the reason for the denial from the 
creditor before you go to the credit bureau.

Do women have special problems with credit applications?

Married and formerly married women may encounter some common 
credit-related problems. For more information, write for the free 
FTC brochure, Women and Credit Histories, Public Reference, 
Federal Trade Commission, Washington, D.C. 20580.  You also may 
write to this address for a free copy of Best Sellers, which 
lists all the FTC's consumer and business publications.

Where should I report violations of the law?

Although the FTC can't act as your lawyer in private disputes, 
information about your experiences and concerns is vital to the 
enforcement of the Fair Credit Reporting Act. Please send 
questions or complaints to: Correspondence Branch, Federal Trade 
Commission, Washington, D.C. 20580.

1983
 

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