More About Laws That Protect You...

The Fair Credit Reporting Act requires a credit card company or other creditor that denies you credit based on information in your credit report to:

Notify you of its decision to deny you credit.

Explain the item in the credit report that led to its decision.

Identify the credit bureau that provided the credit report.

Authorize you to obtain a free credit report from that bureau and to dispute the item. You have 60 days to request the credit report. If you dispute an item, the credit bureau has 30 days to notify you and correct an error, if applicable. The law was amended in 1997 to add further protections from potential abuses of credit bureau information. A common mistake on credit reports in inaccurate information, such as showing the incorrect number of late payments. Another common mistake is reporting as your debts those belonging to another person with the same name. If a credit report dispute is not resolved to your satisfaction, visit the Web site of the U.S. Federal Trade Commission (F.T.C.) for additional information. The full Fair Credit Reporting Act law is here...

Another big one is the Equal Credit Opportunity Act. This law prohibits a card company or other creditor from denying you credit based on your sex, race, age, religion, marital status, national origin or receipt of public assistance. You are entitled to receive an explanation if denied credit. The full law is here...

Fair Credit Billing Act. This law protects you from unauthorized charges made to your credit cards or other types of revolving credit. You have 60 days to notify the creditor, which must notify you within 30 days. The creditor must resolve your dispute within two billing cycles, which are usually months.  See it here...

Calls, calls, calls. The Fair Credit Debt Collection Practices Act law prohibits a collection agency from harassing, intimidating or using abusive tactics to collect amounts you may owe. Collection agencies may not contact you at work if they know your employer disapproves. And they are limited to contacting you between the hours of 8 a.m. and 9 p.m. Read about it here...

Privacy and free credit reports. The Fair and Accurate Credit Transactions Act (FACTA) Effective December 4, 2003 there is a National Fraud Alert System that allows identity theft victims to place an alert on their credit files and prevent the credit reporting agencies from releasing information on their credit history. Identity theft victims who place a fraud alert in their credit report are entitled to a free credit report. There are also Active Duty Alerts for people in the Armed Forces to let the credit reporting agencies and creditors know where they are. For military personnel stationed overseas, this can prevent credit transactions from taking place in their hometown while they are away. Fraud alerts and active duty alerts prevent new credit accounts from being opened. They also prevent the ordering of additional cards on existing credit card accounts.

Another change is that consumers will be entitled to a free annual credit report. The reasoning is that if consumers can monitor their credit reports regularly, they are more likely to detect identity theft. The dates that consumers can get their free credit reports is divided by region. People in the western states can order their credit reports starting December 01, 2004. For the midwest the date is March 01, 2005. For the southern states the date is June 01, 2005 and for the eastern states the date is September 01, 2005.

With regard to closed accounts, the credit reporting agencies are required to note whether it was closed by the consumer or by the creditor.

If you have a credit report dispute, you can take it up with the company that reported it. You are no longer required to dispute only with the credit reporting agency. Read more here...