Other Free Encyclopedias » Online Encyclopedia » Encyclopedia - Featured Articles » Featured Articles: Cherry Office Furniture - How to Find Cherry Office Furniture to Email A Fax - How to Email a Fax

Credit Report Law - How The Law Protects Your Credit Report

act consumer reporting fair

There was a long period of time in the history of the United Sates where there were few regulations dealing with the credit card industry. Because of consumer complaints and some documented abuses, several different waves of legislation came into existence to help regulate the industry.

The most prominent of these laws is called the Fair Credit Reporting Act. This laid out the rights of a consumer in relation to their credit. This new credit report law sought to rectify some of the most egregious complaints that kept re-occurring. It also attempts to protect privacy rights and in some ways shelter the credit reporting bureaus from certain liabilities.

The most prominent piece of the act is the right for a consumer to have any mistakes on their credit report corrected. This was, and to some extent still is, a very serious problem. Clerical or other types of errors can sometimes lead to false information being attached to a credit report. Worse yet, sometimes it would take years for the information to be removed or corrected. There were even incidents where the information, once removed, was re-applied erroneously to the same credit report.

The Fair Credit Reporting Act seeks to stop this from happening. However, with the current structure of credit reporting bureaus and local credit agencies, this type of mistake still occurs.

Another piece of the credit report law states that a consumer has a right to review their credit report once a year at no cost. This was in response to the fees that were originally charged in order for a person to acquire a copy of their report. In addition, the law also states that if the consumer is denied credit based on their report, they are entitled to receive a copy of the report at no cost.

Privacy is another aspect that was addressed in the credit report law. The Act gives consumers the right to restrict distribution of their name and address to creditors. This can dramatically cut down on the amount of unsolicited credit card offers and junk mail that a person receives.

Other laws have been passed in an attempt to help reign the industry in. The Fair Credit Billing Act, which helps to curtail outrageous fees and unexpected charges, and the Fair Debt Collection Practices Act, which limits the methods and times that collection agencies can contact a person, have both helped to shield consumers.

Many people rely on credit in their daily lives. Take advantage of the credit report laws that have been passed. Request a credit report once a year and examine it closely for any errors or mistakes. Request, in writing, that any errors are corrected. Always be very aware of what is happening to your credit.

Credit Score Canada - Canada Credit Scores [next] [back] Credit Merchant Account Services - To Accept Credit, merchant account services are essential

User Comments

Your email address will be altered so spam harvesting bots can't read it easily.
Hide my email completely instead?

Cancel or