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