Credit Reports -- Frequently Asked Questions (continued)
Q. Can my employer get my report or can a creditor or insurer get a report that contains medical information about me?
Only if you say it's okay. A credit bureaus may not supply information about you to your employer, or to a prospective employer, without your consent.
Q. What should I know about "investigative consumer reports"?
"Investigative consumer reports" are detailed reports that involve interviews with your neighbors or acquaintances about your lifestyle, character, and reputation. They may be used in connection with insurance and employment applications. You'll be notified in writing when a company orders such a report. The notice will explain your right to request certain information about the report from the company you applied to. If your application is rejected, you may get additional information from the credit bureaus. However, the CRA does not have to reveal the sources of the information.
Q. How long can a credit bureau (CRA) report negative information?
Negative information can remain on your credit report for seven years. The three major credit reporting agencies -- Equifax, Experian and TransUnion -- are good at automatically removing any negative information about a month before it is seven years old. There are certain exceptions:
(1) Information about criminal convictions may be reported without limitation;
(2) Bankruptcy information may be reported for 10 years;
(3) Information reported in response to an application for a job with a salary of more than $75,000 has no time limit;
(4) Information reported because of an application for more than $150,000 worth of credit or life insurance has no time limit; and
(5) Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer.
Q. Can anyone get a copy of my credit report?
No. Only people with a legitimate business need, as recognized by the Fair Credit Reporting Act. For example, a company is allowed to get your report if you apply for credit, insurance, employment, or to rent an apartment. This doesn't mean that some people don't illegally access your credit report. For example, if you walk on to a car lot to look at cars, some sales people will sneak in and look at your credit report from a computer if you have given them your name so that they can better determine if you qualify for a loan or can afford a nicer car.
Q. How can I stop a credit bureau (credit reporting agency) from including me on lists for unsolicited credit and insurance offers?
Creditors and insurers may use credit bureaus file information as a basis for sending you unsolicited offers. These offers must include a toll-free number for you to call if you want to remove your name and address from lists for two years; completing a form that the credit bureaus provides for this purpose will keep your name off the lists permanently. You can opt out of credit offers.
Q. Are there other laws regarding credit and credit reports that I should know about?
Yes. If your credit application was denied, the Equal Credit Opportunity Act (ECOA) requires creditors to specify why - if you ask. For example, the creditor must tell you whether you were denied because you have "no credit file" with a credit bureausor because the credit bureaus says you have "delinquent obligations." The ECOA also requires creditors to consider additional information you might supply about your credit history. You may want to find out why the creditor denied your application before you contact the credit bureaus. The Fair Credit Reporting Act is federal legislation governing credit bureaus and credit reports.
Q. Can I sue over negative information being reported on my credit report?
A consumer can bring a civil action for willful noncompliance with the Fair Credit Reporting Act and receive actual damages or punitive damages up to $1,000 (Section 16). You may also sue for negligent noncompliance and recover actual damages sustained by you (Section 617). Attorney's fees, as determined by the court, will be allowed for both forms of action.
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