Consumer Credit File Rights

consumer credit file rights

The consumer credit file rights is part of the fair credit reporting act and works with the credit repair organizations act to ensure consumers are treated fairly and they are known of their rights before dealing with companies that work to repair their credit.

Being part of the fair credit reporting act it also serves to make sure that the credit reporting agencies that handle this customer information in these files, do so in a way that is fair and gives those customers a way to resolve errors and discrepancies in their file.

If you have a contract with a credit repair company or any company that requires a copy of your credit report to make some sort of decision about you, or offer any services in regard with your credit information, the following is an example of the kind of disclosure they are required to have you examine and sign before any contract or service can be initiated.

What the file states

The consumer credit file rights states that you have a right to dispute inaccurate information in your credit report by contacting the credit bureau directly.

    However, neither you nor a credit repair company or credit repair organization has the right to have accurate, current and verifiable information removed from your credit report.

    Yet this is the action most credit repair companies focus in on. Disputing ALL negative information hoping that the creditor cannot verify it's information.

    The credit bureau must remove accurate, negative information from your report only if it is over 7 years old.

    Bankruptcy information can be reported up to 10 years.

    These are items that should be disputed if they remain on your report.

You have a right to obtain a copy of your credit report from a credit bureau.

    You may be charged a fee.

    This fee should only be assessed if you are randomly checking your score. Make sure you first use your free yearly credit report check. If you have already exhausted this option, you may want to use a credit monitoring service that includes your three credit reports as part of the service. There is usually a free trial period.

    There is no fee, however, if you have been turned down for credit, employment, insurance, or a rental dwelling because of information in your credit report.

    You will have 60 days from the notification that you have been denied credit to request your free report.

You are entitled to receive a free copy of your credit report

    if you are unemployed and intend to apply for employment in the next 60 days. If you are a recipient of public welfare assistance, or if you have reason to believe that there is inaccurate information in your credit report due to fraud.

your rights under this law

  • You have a right to sue a credit repair organization that violated the Credit Repair Organization Act. This law prohibits deceptive practices by credit repair organizations.You can start this process by filing a complaint with the Federal Trade Commission.

  • You have the right to cancel your contract with any credit repair organization for any reason within 3 business days from the date you signed it.
    Credit bureaus are required to follow reasonable procedures to ensure that the information they report is accurate.
    Thanks to the Fair Credit Reporting Act
    However mistakes may occur.
  • You may, on your own, notify a credit bureau in writing that you dispute the accuracy of information in your credit file.
    The credit bureau must then re-investigate and modify or remove inaccurate or incomplete information.

The credit bureau may not charge any fee for this service.

    Any pertinent information and copies of all documents you have concerning an error should be given to the credit bureau.

If the credit bureaus' reinvestigation does not resolve the dispute to your satisfaction,

    you may send a brief statement to the credit bureau to be kept in your file explaining why you think the record is inaccurate.

    The credit bureau must include a summary of your statement about disputed information with any report it issues about you.

The Federal Trade Commission regulates credit bureaus and credit repair organizations.

For more information contact: The Public Reference Branch Federal Trade Commission , Washington,D.C. 20580

If you have been handed these rights as a disclosure;

then this document should read:

I acknowledge that I have received a copy of Consumer Credit File Rights and I agree that I understand these rights.

signature and date line

You should receive a copy of this signed document for your files.

Many companies especially those offering credit monitoring services just add a link so the consumer may view the consumer credit file rights and therefore complying with the legal requirement to make these known.

 Consumer Credit File Rights to Legal Credit Restoration
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