Fair Credit Information Center

The Fair Credit Information Act regulates how the three collection bureaus (Equifax, Experian and TransUnion) collect, distribute, and use consumers’ credit report information. These entities are for-profit companies that collect our information and sell it to companies that evaluate our credit report information for purposes such as car purchases, credit cards, mortgages, and so forth. If you’ve ever requested a loan from a bank, your credit information was disseminated by one or all of those bureaus to the bank. Information can include late payments, tax liens, legal judgments, bankruptcies, and so on. It is important for you to check your credit report information once a year to ensure the information they are reporting about you is correct.

Under the Fair Credit Information Act, these credit report agencies must follow certain regulations:

• Provide consumers with information about themselves and verify information if their accuracy is disputed. As a consumer, you are entitled to a free credit report once a year
• A credit bureau may not publish negative information about a consumer for more than seven years. Exceptions include tax liens, which are removed seven years after they are actually paid, and bankruptcies that are removed after ten years.
• Once you’ve disputed negative information, a credit bureau may not repost it unless it notifies the consumer in writing within five days

One thing is clear, especially in light of the recent bank crisis that seems to have changed all the rules. Without very good credit, you can’t buy or rent a home, purchase or lease a car, or get credit cards to go about the business of living. Poor credit can also cost you employment and educational opportunities. Having a good credit score is more important than ever.

It’s one thing to have bad credit because you didn’t keep up your end of the bargain when you borrowed money. It’s another thing altogether when your credit report has false information and you can’t get it fixed. Considering that good credit is so important to the quality of our lives, it’s not just unjust; it’s why the Fair Credit Reporting Act was enacted into law. Understand that if false information is reported on your credit report, you can take legal action against the debt collectors, agencies, or creditors that deny your requests to fix it.

For more information what you can do to protect your credit, visit: