CreditShack.org

Accessing your credit report just keeps getter easier and easier. In 1970, Congress set a major milestone in consumer information access when it passed the Fair Credit Reporting Act (FCRA), allowing consumers to purchase access to their own credit reports. In 2004, more than 30 years after the passage of the original FCRA, Congress passed H.R. 2622 - Fair and Accurate Credit Transactions Act (FACT Act) in response to growing threats of identity theft and privacy concerns.

New Credit Act Provides Greater Protections

The new FACT Act enables you to more readily access the information used by lenders and others to evaluate creditworthiness. The FACT Act hopes to spurn greater credit awareness, encouraging consumers like you to correct damaging credit report inaccuracies and check regularly for signs of identity theft.

“This new legal right gives consumers an important tool for protecting their identity and keeping track of their credit,” said Lydia Parnes, Acting Director of the FTC’s Bureau of Consumer Protection.

Free annual credit reports available online, by mail & phone

The new Act established a central website for consumers to download their free annual credit reports: www.AnnualCreditReport.com. According to the Federal Trade Commission’s credit report fact sheet:

Consumers who use the www.annualcreditreport.com website will be able to obtain their free report online. Consumers also may request a copy of their credit report by phone or mail – for these methods, consumers must fill out a standardized form.

Free annual credit reports phased in over nine month period

Free reports will be phased in across the country from west to east over a nine-month period. Consumers will become eligible on the following schedule:

Beginning December 1, 2004: Western states (Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming);

Beginning March 1, 2005: Midwestern states (Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin);

Beginning June 1, 2005: Southern states (Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee, and Texas); and

Beginning September 1, 2005: Eastern states (Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, Virginia, and West Virginia), Puerto Rico, and all U.S. territories.

What to do with your free report

When you become eligible for you annual credit report, you should request one immediately. Check your credit report for any inaccuracies in billing history and for any signs of identity theft, such as unknown accounts listed in your credit history.

If you find an error on your credit report, both the credit report agency and the entity that reported the inaccurate information must investigate and correct any inaccurate information. According to the FTC, you should follow these two steps to exercise your full legal rights under the FCRA and FACTA to correct your credit report:

• Tell the consumer reporting company, in writing, what information you think is inaccurate.

  Consumer reporting companies must investigate the items in question — usually within 30 days — unless they consider your dispute frivolous. They also must forward all the relevant data you provide about the inaccuracy to the organization that provided the information. After the information provider receives notice of a dispute from the consumer reporting company, it must investigate, review the relevant information, and report the results back to the consumer reporting company. If the information provider finds the disputed information is inaccurate, it must notify all three nationwide consumer reporting companies so they can correct the information in your file.

  When the investigation is complete, the consumer reporting company must give you the written results and a free copy of your report if the dispute results in a change. (This free report does not count as your annual free report under the FACT Act.) If an item is changed or deleted, the consumer reporting company cannot put the disputed information back in your file unless the information provider verifies that it is accurate and complete. The consumer reporting company also must send you written notice that includes the name, address, and phone number of the information provider.

• Tell the creditor or other information provider in writing that you dispute an item. Many providers specify an address for disputes. If the provider reports the item to a consumer reporting company, it must include a notice of your dispute. And if you are correct — that is, if the information is found to be inaccurate — the information provider may not report it again.

Correcting inaccuracies improves your credit rating

Lenders and others review your credit report to determine your creditworthiness. By contesting inaccurate information on your credit report, you allow your creditors to make a more accurate – and more favorable –judgment of your creditworthiness. In most cases, correcting incorrect information will improve your credit score.