Your Consumer Rights Under The Revised Federal Fair Credit Reporting Act" Adapted from Federal Trade Commission's Model Fact Sheet

Credit reporting agency subscribers comprised of banks and merchants etc., may not access an individual's credit record unless authorized. This authorization is standard procedure when you sign credit and loan applications, life insurance applications, employment applications, security clearance requests , etc. Read the fine print on the applications for more details.

The Federal Fair Credit Reporting Act (FCRA) is designed to promote accuracy, fairness, and privacy of information in the files of every consumer maintained by a credit reporting agency--CRA. The law was significantly amended by the1996 Congress. The new changes took effect on 30 September, 1997.

Most credit bureaus gather and sell information about you -- such as if you pay your bills on time or have filed bankruptcy -- to creditors, employers, landlords, and other businesses. You may not know that check verification companies and tenant screening firms, as well as the Medical Information Bureau, are all credit bureaus. You can find the complete text of the FCRA at the Federal Trade Commission's web site, www.ftc.gov

Consumers must be told if information in your file has been used against you. Anyone who uses information from a CRA to take action against you -- such as denying an application for credit, insurance, or employment -- must tell you, and give you the name, address, and phone number of the CRA that provided the consumer report, plus disclose your right to a free report after denial.

Consumers can find out what is in their own credit files. At your request, a CRA must give you the information in your file, and a list of everyone who has requested it recently. There is no charge for the report if a person has taken action against you because of information supplied by the CRA, if you request the report within 60 days of receiving notice of the action.

Consumers may dispute inaccurate information with the CRA. If you tell a CRA that your file contains inaccurate information, the CRA must investigate the items (usually within 30 days) by presenting to its information source all relevant evidence you submit, unless your dispute is frivolous. The source must review your evidence and report its findings to the CRA. (The source also must advise national CRAs -- to which it has provided the data -- of any error.) The CRA must give you a written report of the investigation, and a copy of your report if the investigation results in any change. If the CRA's investigation does not resolve the dispute, you may add a brief statement to your file. The CRA must normally include a summary of your statement in future reports. If an item is deleted or a dispute statement is filed, you may ask that anyone who has recently received your report be notified of the change.

Inaccurate information must be corrected or deleted. A CRA must remove or correct inaccurate or unverified information from its files, usually within 30 days after you dispute it. However, the CRA is not required to remove accurate data from your file unless it is outdated (as described below) or cannot be verified. If your dispute results in any change to your report, the CRA cannot reinsert into your file a disputed item unless the information source verifies its accuracy and completeness. In addition, the CRA must give you a written notice telling you it has reinserted the item. The notice must include the name, address and phone number of the information source.

Consumers may dispute inaccurate items with the source of the information. If you tell anyone -- such as a creditor who reports to a CRA -- that you dispute an item, they may not then report the information to a CRA without including a notice of your dispute. In addition, once you've notified the source of the error in writing, it may not continue to report the information if it is, in fact, an error. Outdated information may not be reported. In most cases, a CRA may not report negative information that is more than seven years old; ten years for bankruptcies.

Your consent is required for reports that are provided to employers, or reports that contain medical information. A CRA may not give out information about you to your employer, or prospective employer, without your written consent. A CRA may not report medical information about you to creditors, insurers, or employers without your permission. An employer considering adverse action must show you the report.

Consumers may seek damages from violators. If a CRA, a user or (in some cases) a provider of CRA data, violates the FCRA, you may sue them in state or federal court.

"Credit Repair Doctors" are strictly regulated under the new law. Their promises that they can "change your social security number" to hide your negative credit background are illegal. Don't give credit doctors your money, use it to pay your bills and rebuild your credit.

The new law also gives big banks the right to share your credit report and other information with "affiliates." Your mutual fund may be owned by a bank that will make a credit card offer to you, for example. Those banks that desire to take advantage of "affiliate-sharing" must send you a onetime offer to opt-out. The law does not require that this notice be very clear. You may have received it and tossed it, or never noticed it. They're not required to have toll-free numbers. We encourage you to opt-out. Shop around when you need financial products instead of letting your own bank send you mediocre offers. You'll need to send your bank a letter stating that you want to exercise your FCRA right to opt-out of information sharing among affiliates.

For more information about errors on your credit report, other fact sheets and helpful information are available on the Federal Trade Commission's web site.

Protecting Your Identity

Identity Theft Causes Problems

Identity theft happens when an opportunity arises and thieves are not very particular for one's age, if there is a credit/debit card number to be had. Identity theft, including, but not limited to, Social Security (SSN) number, driver’s license, bank accounts, PIN numbers, credit / debit card numbers is one of the fastest growing crimes against consumers, both young and old, says the nonprofit Institute of Consumer Financial Education (ICFE), a San Diego based group.

If your wallet has been lost or stolen, usually within hours thieves may order expensive monthly cell phone service, apply for other credit cards, get credit lines approved and receive a PIN number from DMV to change your driving record information online, and more, unless you make a few very important telephone calls that will limit the damage.

First call the three major credit reporting agencies (Equifax:1-800-525-6285, Experian:1-888-397-3742 and Trans Union:1-800-680-7289) and ask them to immediately place a Fraud Alert on your name and SSN#. The alert means any company that checks your credit knows your information was stolen and they have to contact you by phone to authorize new credit

Next, notify the SSN national fraud hotline at 1-800-269-0271. Then, cancel your credit cards immediately. Be sure to have the toll free numbers and your card numbers kept handy so you know whom to call. If you have not made a list, a simple way is to photocopy the contents of your wallet (do both sides of each license, credit cards, etc.), then add their toll free phone numbers to the list.

Last, but not least, file a police report the same day, if at all possible, in the jurisdiction where it was stolen, because this proves to credit providers you are diligent, and is an important first step toward an investigation.

For more information about protecting yourself against identity theft, visit the U. S. Government’s Web site on ID fraud: http://www.consumer.gov/idtheft/ and the National Fraud Information Center at http://www.fraud.org/.

Sample Dispute Letter

Date

Your Name
Your Address
Your City, State, Zip Code

Complaint Department
Name of Credit Reporting Agency
City, State, Zip Code

To whom it may concern:

I am writing this letter to dispute the following information in my file. The items I am disputing are also encircled on the attached copy of the report I received. (Identify item(s) disputed by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.)

This item is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why). I am requesting that the item be deleted (or request another specific change) to correct the information.

Enclosed are copies of (use this sentence if applicable and describe any enclosed documentation, such as payment records, court documents) supporting my position. Please reinvestigate this (these) matter(s) and (delete or correct) the disputed item(s) as soon as possible.

Sincerely,
Your name

Enclosures: (List what you are enclosing)

The FAIR DEBT COLLECTION PRACTICES ACT, (15 USC §1692, et. seq.) which became law in 1977, protects consumers from the unfair collection practices of third-party bill collectors. The FDCPA applies only to debt collectors attempting to collect consumer debts -- debts which were incurred for personal, family or household purposes. Business or agricultural debts are not covered by the FDCPA and, even if the debt is a consumer debt, the entity which actually extended the credit is not covered by the FDCPA. For example:

Bill collectors MAY NOT call you or visit with you at inconvenient times or places. That means, generally, before 8:00 a.m. or after 9:00 p.m. or on your job, if you have asked not to be contacted there.

Bill collectors MAY NOT discuss your credit problems with your family members or friends. They may call your family and friends to try to locate you, however.

If the bill collector knows you have a lawyer, he must contact the lawyer and he MAY NOT continue to contact you.

Bill collectors MUST STOP contacting you if you tell them to in writing.

Bill collectors are FORBIDDEN from using harassing or abusive tactics, such as:

• using obscene language; or
• making false statements about who they are; or
• using threats to make your name public as a "deadbeat"; or
• repeatedly use the telephone to harass or annoy you; or
• threatening to use force against you or harm you; or
• sending documents to you which look like court documents; or
• threatening to send the sheriff out to lock you up; or
• threatening to garnish your wages "tomorrow".

Bill collectors MAY NOT make false statements to you which:

• imply the he/she is an attorney or government representative; or
• imply that you have committed a crime; or
• represent that they operate or work for a credit bureau; or
• misrepresent the amount you owe; or
• misrepresent the involvement of an attorney; or
• misrepresent the legal impact of papers being sent to you.

Bill collectors MAY NOT:

• collect any money greater than your debt; or
• deposit a post-dated check prematurely; or
• make you accept a collect call or pay for a telegram; or
• take or threaten to take your property without legal process; or
• contact you by postcard.

Bill collectors MAY NOT give false information about you to anyone, including credit bureaus or credit reporting agencies.

Within FIVE DAYS of contacting you, a bill collector must send a written notice to you that includes information about your debt, the creditor involved and the fact that you have 30 days to dispute the debt. If you dispute the debt in writing, the bill collector has 30 days to provide written proof of the debt or collection efforts must STOP.

If a bill collector violates the law, you have the right to sue the collector in state or federal court within one year from the date you believe the law was violated. If you win, you may recover an award of (1) actual damages, (2) statutory damages of up to $1,000 to the individual consumer, and (3) in a class action statutory damages of up to $500,000 or 1% of the debt collector’s net worth whichever is less. Statutory damages are a penalty against the debt collector payable to the consumer for violation of his or her FDCPA rights. The consumer need not have actual damages in order to recover statutory damages. The successful consumer is also entitled to an award of costs and reasonable attorneys fees.

DISCLAIMER: This information is provided for general information purposes only and is not intended to be a legal opinion nor legal advice nor is it intended to be a complete discussion of all the issues related to the area of the Fair Debt Collection Practices Act or consumer bankruptcy. Every individual's factual situation is different and you should seek specific legal advice regarding your rights.

The Comptroller is responsible for regulating consumer collection agencies in Florida under Chapter 559 of the Florida Statutes. In addition, the Office maintains a toll-free hotline for Florida residents with questions concerning financial matters. A great percentage of the calls involve debt collection practices—including harassing phone calls. The following are some common questions and answers concerning consumer rights and responsibilities.

A. A collection agency is a debt collector, other than the creditor, who regularly collects debts owed to others. This includes attorneys who collect debts on a regular basis.

A. First, you must determine who is calling. If the collector represents the company to whom the debt is owed (the creditor), they are allowed to call you at home and at work. However, if the caller represents a collection agency hired to collect the debt, they are a third-party debt collector and must comply with the federal Fair Debt Collection Practices Act (FDCPA), which is much more restrictive. Under the FDCPA, collection agencies may contact you by mail, phone, telegram, or fax, but they may not contact you at unreasonable times, such as before 8 a.m. or after 9 p.m., and they can't call you at work if you have told them your employer disapproves.

A. You can send a certified letter to the collection agency asking them to stop. Once they receive your letter, they cannot call you, except to notify you that there will be no further contact. You can also request that they only contact your attorney.

A. If you have an attorney, they may not contact anyone other than the attorney. If you do not have an attorney, a collector may contact others, but only to find out where you live and work. They are not allowed to discuss the debt, or the nature of the call.

A. Collection agencies are prohibited from several kinds of abusive practices, including:

Harassment, such as:

• Threatening violence or harm against you, your property, or your reputation.
• Using profane language.
• Calling more than once a day.
• Phoning without identifying themselves.
• Sending postcards.
• Addressing correspondence with derogatory terms such as "Deadbeat Joe."

False statements, such as:

• Implying that they are attorneys or government representatives.
• Implying that you have committed a crime.
• Representing themselves as employees of a credit bureau.
• Misrepresenting the amount of your debt.
• Saying that you will be arrested if you do not pay your debt.
• Saying they will garnish, attach, or sell your property or wages, unless the agency or creditor intends to do so and has taken legal action to do so.
• Threatening to take action, such as a lawsuit, which may not be legally taken, or which they do not intend to take.
• Threatening to file a report with a credit bureau - only the owner of the debt can file against consumers.

Unfair practices, such as:

• Collecting an amount greater than what you owe, unless allowed by law.
• Depositing a post-dated check prematurely.
• Threaten to take your property unless this can be done legally.

A. The Comptroller's Office maintains a toll-free hotline at 1-800-848-3792 where consumers can get more information and report suspected abuse. Also, you can contact the Federal Trade Commission, which administers the Fair Debt Collection Practices Act at 1-877-382-4357 or write them at Correspondence Branch, Federal Trade Commission, Washington, D.C., 20580.