You Need To Know About Credit Repair And Consumer Rights
3:03 AM
In 1970 Congress enacted a federal law to protect consumers from inaccuracies on their credit reports. This law is identified as the Fair Credit Reporting Act or the FCRA and it was approved to defend consumers and promote the fairness, accuracy and privacy of personal information compiled by credit reporting agencies on credit reports.
Credit reporting agencies are entities that are in the commerce of collecting and compiling credit information on consumers. The information is used for credit evaluation and other purposes. The main credit reporting agencies are TransUnion, Equifax and Experian.
The Fair Credit Reporting Act allows a consumer to discuss and question any information found on a credit report on the foundation of completeness and accuracy. The credit bureaus have 30 to 45 days after a dispute to verify the ownership of the credit being reported. If they are not capable to substantiate the accounts it must be removed from the report.
The FCRA has also given other responsibilities to the credit reporting agencies. Each year the credit bureaus must supply a free credit report to any consumer who desires one. Prior to 2003 the consumer had to pay for this report but a 2003 amendment changed this and now they must provide one report each year at no fee to the consumer. If credit is denied on the foundation of information provided in the report the bureau with the harmful reporting must also give a report upon request.
A consumer has the right to question any information on his or her report. As per the FCRA if information is deleted as a result of the consumer's dispute the credit reporting agency cannot reinstate the negative information without notifying the consumer in writing.
The FCRA also limits the amount of time that damaging information can be retained on the report. Typically most must be removed within 7 years from the time of delinquency but bankruptcies can stay on for 10 years and tax liens can stay on for 7 years after they are paid off.
It has been projected that as many as 40% of all dubious information is not properly verified within the time limit. A consumer can use that fact for their benefit. However, be aware that truthful and truthful information should not be disputed, as correct and truthful information should remain on the report even if it is harmful.
A FCRA gave consumers the right to argue inaccuracies and errors and to do the work to repair their credit. Credit repair takes time and patience but it can be accomplished by doing it yourself or by hiring a professional company that specializes in credit repair.
Credit reporting agencies are entities that are in the commerce of collecting and compiling credit information on consumers. The information is used for credit evaluation and other purposes. The main credit reporting agencies are TransUnion, Equifax and Experian.
The Fair Credit Reporting Act allows a consumer to discuss and question any information found on a credit report on the foundation of completeness and accuracy. The credit bureaus have 30 to 45 days after a dispute to verify the ownership of the credit being reported. If they are not capable to substantiate the accounts it must be removed from the report.
The FCRA has also given other responsibilities to the credit reporting agencies. Each year the credit bureaus must supply a free credit report to any consumer who desires one. Prior to 2003 the consumer had to pay for this report but a 2003 amendment changed this and now they must provide one report each year at no fee to the consumer. If credit is denied on the foundation of information provided in the report the bureau with the harmful reporting must also give a report upon request.
A consumer has the right to question any information on his or her report. As per the FCRA if information is deleted as a result of the consumer's dispute the credit reporting agency cannot reinstate the negative information without notifying the consumer in writing.
The FCRA also limits the amount of time that damaging information can be retained on the report. Typically most must be removed within 7 years from the time of delinquency but bankruptcies can stay on for 10 years and tax liens can stay on for 7 years after they are paid off.
It has been projected that as many as 40% of all dubious information is not properly verified within the time limit. A consumer can use that fact for their benefit. However, be aware that truthful and truthful information should not be disputed, as correct and truthful information should remain on the report even if it is harmful.
A FCRA gave consumers the right to argue inaccuracies and errors and to do the work to repair their credit. Credit repair takes time and patience but it can be accomplished by doing it yourself or by hiring a professional company that specializes in credit repair.
About the Author:
Mike Jones says you can remove collections from your credit report by utilizing some simple bad credit repair strategies.
You can leave a response, or trackback from your own site.