fair credit reporting
If you have
ever applied for a credit card, a charge account, a loan, or a job, then there
is a "consumer report" regarding your address, your job, your bills, and
whether you have been sued, arrested, or filed
for bankruptcy. These reports are created and sold by Consumer
Reporting Agencies or Credit Reporting Agencies (CRAs).
The
Fair Credit
Reporting Act (FCRA) is designed to promote accuracy
and ensure the privacy of the information used in consumer reports (you may have
additional rights under state laws). The following are answers to
frequently asked questions about the FCRA.
Who
has my credit report?
Typically,
the three major credit bureaus have your credit report:
Any person or
company that has denied you credit, insurance, or employment due to your credit
report must give you the name, address, and telephone number of the CRA that
provided the report.
How
can I find out what is in my report?
Just ask for
it. The CRA must tell you about everything contained in your report.
Typically, the CRA must reveal the sources of the information. Also, the CRA
also must give you a list of everyone who has requested your report within the
past year (two years for employment related requests).
If a company
takes adverse action against you (such as denying you credit, insurance, or
employment) and you request your report within 60 days of the adverse action,
then such company must give you a free copy of your report. Also, you are
entitled to one free report a year if you are unemployed and plan to look for a
job within 60 days, if you are on welfare, or if your report is inaccurate
because of fraud.
Can
anyone else get a copy of my report?
No.
Only people with a legitimate business need, as recognized by the FCRA. For
example, a company is allowed to get your report if you apply for credit,
insurance, or to rent an apartment. Your employer (or future employer) may do so
only if you
agree in writing.
Is
there anything I can do about inaccurate or incomplete information?
Yes.
Under the FCRA, both the CRA and the information provider have responsibilities
for correcting inaccurate or incomplete information in your report. To protect
all your rights, you must dispute the report in writing:
To the
CRA: Describe the inaccurate information. The CRA must reinvestigate this
information usually within 30 days (unless they consider your claim
frivolous). They must also notify the creditor or information provider which
must then investigate the information and report its results. If the
information turns out to be inaccurate, then the information provider must
notify all nationwide CRAs to correct the information.
When
reinvestigation is complete, the CRA must give you the written results and a
free copy of your report if there is a change. If an item is changed or
removed, the CRA cannot put the disputed information back into your report
unless the information provider verifies its accuracy and completeness.
Further, the CRA must give you the name, address, and phone number of the
information provider.
To
the Information Provider: Also write the creditor or other
information provider to inform them that you dispute an item. If the provider
reports the item to any CRA, it must include a notice of your dispute. In
addition, if your dispute is valid, then the information provider may not use
the information again.
Keep a copy
of everything you send to the CRAs and information providers. Also, it
is recommended that you send all correspondence by registered mail, return
receipt requested or certified mail.
Download
Sample Dispute Letter:
What
should I do if a CRA, user, or information provider violates my rights under the
FCRA?
Contact
your local attorney or report violations to the Federal Trade Commission using
its
on-line complaint form.
Do I
have the right to sue for damages?
Maybe. You may sue a CRA, a user, or an information provider in state or federal court for most violations of the FCRA. If you win, the
defendant will have to pay damages and reimburse you for attorney fees to the
extent ordered by the court. Here are the two relevant sections regarding
liability for noncompliance with the FCRA:
§
616. Civil liability for willful noncompliance [15 U.S.C. § 1681n]
(a) In
general. Any person who willfully fails to comply with any requirement imposed
under this title with respect to any consumer is liable to that consumer in an
amount equal to the sum of
- (1)(A)
any actual damages sustained by the consumer as a result of the failure or
damages of not less than $100 and not more than $1,000; or
-
-
- (B) in
the case of liability of a natural person for obtaining a consumer report
under false pretenses or knowingly without a permissible purpose, actual
damages sustained by the consumer as a result of the failure or $1,000,
whichever is greater;
-
- (2) such
amount of punitive damages as the court may allow; and
-
- (3) in
the case of any successful action to enforce any liability under this
section, the costs of the action together with reasonable attorney's fees as
determined by the court.
(b) Civil
liability for knowing noncompliance. Any person who obtains a consumer report
from a consumer reporting agency under false pretenses or knowingly without a
permissible purpose shall be liable to the consumer reporting agency for
actual damages sustained by the consumer reporting agency or $1,000, whichever
is greater.
(c)
Attorney's fees. Upon a finding by the court that an unsuccessful pleading,
motion, or other paper filed in connection with an action under this section
was filed in bad faith or for purposes of harassment, the court shall award to
the prevailing party attorney's fees reasonable in relation to the work
expended in responding to the pleading, motion, or other paper.
§
617. Civil liability for negligent noncompliance [15 U.S.C. § 1681o]
(a) In
general. Any person who is negligent in failing to comply with any requirement
imposed under this title with respect to any consumer is liable to that
consumer in an amount equal to the sum of
- (1) any
actual damages sustained by the consumer as a result of the failure;
-
- (2) in
the case of any successful action to enforce any liability under this
section, the costs of the action together with reasonable attorney's fees as
determined by the court.
(b)
Attorney's fees. On a finding by the court that an unsuccessful pleading,
motion, or other paper filed in connection with an action under this section
was filed in bad faith or for purposes of harassment, the court shall award to
the prevailing party attorney's fees reasonable in relation to the work
expended in responding to the pleading, motion, or other paper.
If you need help with any of the matters described above, call the Futeral Law Firm
locally at (843) 284-5500, toll free at (877) 913-5500, or fill
out our online questionnaire.
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