Fair Credit Reporting Act

HUNDTOFTE v. ENCARNACION, 280 P.3d 513

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WILSON v. RENTAL RESEARCH SERVICES, 165 F.3d 642

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Limitations on What Can Be Reported

Judgments, tax liens, accounts ---> 7 years Bankruptcy ---------> 10 years Arrests -----> 7 years Conviction --------> Forever

SCHOENDORF v. U.D. REGISTRY, INC., 97 Cal. App. 4th 227

Consumers have a right to dispute information. The state can and does provide means to information in a credit repot to seek a reinvestigation or the accuracy of information, and provide a brief statement explaining any unresolved disputed information to be included in any credit report the agency issues about the consumer.

Credit Reporting Company

Must put into place procedures that result in the maximum possible accuracy. If they don't, then you may have a cause of action ----prima facie case that credit reporting agency was negligent and you were damaged & negligence was the proximate cause

The Fair Credit Reporting Act

Fair Credit Reporting Act (47 KB) Issue Considered Credit scores: They're not just for credit decisions any more. It used to be that these scores were the province of mortgage lenders and credit card companies. Now, insurance companies, wireless-service providers, and even employers are using credit scores to decide on what rates to charge, with whom to deal, and even whom to hire. Some municipalities are even reporting overdue library books and parking violations to consumer reporting agencies. In short, credit scores are important, and they can change your financial life. In response to the growing use and importance of credit scores, Congress passed the Fair Credit Reporting Act, and has strengthened the Act through a number of amendments over time. The Act focuses on consumer reporting agencies - the companies that collect consumer credit information and develop credit scores. The Act is intended to promote accuracy, fairness, and privacy of information used by consumer reporting agencies. The Act gives consumers a number of important rights to obtain information about and dispute inaccuracies in their credit files. Statute The Fair Credit Reporting Act is at 15 USC § 1681 et seq. Important Rights Under the Act Rights to information. The Act provides consumers with two important rights to information. First, the law provides that you have the right to know that a credit report was the basis for an adverse employment, credit, or insurance decision. The user of the credit information must also provide you with the name, address, and phone number of the agency that provided the information. See 15 USC § 1681m. Second, the law provides that - even without any adverse action - you have a right to know the information about you contained in the files of a consumer reporting agency. *(1) You have the right to obtain a copy of that information. In fact, once a year, you may obtain the information for free from each of the three credit reporting agencies. See 15 USC 1681j.* To obtain a free copy of your credit information, you can (1) go to www.annualcreditreport.com; (2) call 1-877-322-8228; (3) fill out the form at www.ftc.gov/bcp/conline/include/requestformfinal.pdf and mail it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281; or (4) go to http://www.lsnv.org/Free_Credit_Report_Index.pdf. *(2) Right to dispute inaccurate information. Not only does the Act provide you with the right to know the information in your credit file, it also gives you the right to dispute inaccuracies in that information. Suppose, for instance, that you paid off a loan but it still appears in the report. Perhaps there is a report by a credit card company that you failed to make timely payments, but your records show otherwise. You can dispute this type of information, and the Act sets forth a procedure for such disputes. See 15 USC § 1681i.* To initiate a dispute, write to the credit reporting agency. Your letter should: identify the information that you believe is inaccurate; state the facts and explain why you believe the information is inaccurate; provide copies (not originals) of documents (e.g., billing statements) that show the information to be inaccurate; and request that the agency remove the inaccurate information You may include a copy of your credit report with the disputed items circled. Send your letter by certified mail. *(3) Whenever a consumer disputes the accuracy of any information in the consumer's file, the Act requires the credit reporting agency to conduct a "reasonable reinvestigation" to determine the accuracy of the information or delete the information within 30 days (45 days if you provide further information during the 30 day period). See 15 USC § 1681i(a)(1)(A). The agency must also, within 5 days, notify the provider of the disputed information (e.g., the credit card company that reported late payments). See 15 USC § 1681i(a)(2)(A).* *If the agency, after reinvestigation, determines that the dispute is frivolous or irrelevant, the agency must notify you. This finding may, for instance, be caused by your failure to provide sufficient information for the agency to investigate the dispute. The notice must state (1) the reasons for the determination and (2) identify any information it needs to conduct the investigation. See 15 USC § 1681i(a)(3).* If, however, the agency finds that the disputed information is "inaccurate or incomplete or cannot be verified," it must (1) delete or modify the information in your file and (2) notify the provider of the information (e.g., the credit card company). See 15 USC § 1681i(a)(5)(A). Such information cannot be reinserted unless the provider of the information certifies that it is complete and accurate. The agency must notify you of a reinsertion; notice must be in writing, sent within 5 days, and provide the name and address of the information provider. See 15 USC § 1681i(a)(5)(B). Whatever the result of a reinvestigation, the agency must notify you of the outcome and provide: (1) a statement that the reinvestigation is complete and (2) a consumer report based on the revised information. See 15 USC § 1681i(a)(6)(B). If the disputed information was deleted from your file, you may request that the agency furnish notifications of the deletion to anyone you designate that has received your consumer report within the last six months (or two years if used for employment purposes). See 15 USC § 1681i(d). If the resolution of your dispute is not satisfactory, you have several rights. You have the right to request a description of the investigation. See 15 USC § 1681i(a)(7). You have the right to add a statement to your file summarizing your dispute regarding the accuracy of the information. See 15 USC § 1681i(b). The consumer reporting agency must include your statement in any subsequent report (unless there are reasonable grounds to believe that the dispute is frivolous or irrelevant). See 15 USC § 1681i(c) In addition, you may also raise your dispute directly with the creditor that provided the information that you believe is inaccurate. Rights to damages. The Act also provides that you have the right to obtain damages from anyone who fails to comply with the requirements of the Act. If the failure is willful, you may be entitled to actual damages caused by the failure (or statutory damages between $100 and $1000), punitive damages, costs of suit, and attorneys fees. See 15 USC § 1681n. If the failure is due to negligence, you may be entitled to actual damages caused by the failure, costs of suit, and attorneys fees. See 15 USC § 1681o.

Fair Debt Collection Practices Act

Within first 5 days of contacting you for debt, you must receive a letter w/validation language with 30 days to dispute. Verification of debt only applies if its a 3rd party debt collector. Standard is - the least sophisticated consumer

You can only use credit reports for ....

Commercial Purposes

HUNDTOFTE v. ENCARNACION, 280 P.3d 513

Note: pulling of credit report can only be for legitimate purposes. Philllips v. Grendahl, 312 F.3d 357. Prospeditve mother-in-law's desire to obtain information about daughter's boyfriend was not permissible purpose for obtaining or using consumer report under FCRA. Investigating person wanting to marry one's daughter was not statutory consumer purpose, and, even if getting married was properly characterized as consumer transaction, that transaction was between daughter and boyfriend.

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The Fair Credit Reporting Act Fair Credit Reporting Act (47 KB) Issue Considered Credit scores: They're not just for credit decisions any more. It used to be that these scores were the province of mortgage lenders and credit card companies. Now, insurance companies, wireless-service providers, and even employers are using credit scores to decide on what rates to charge, with whom to deal, and even whom to hire. Some municipalities are even reporting overdue library books and parking violations to consumer reporting agencies. In short, credit scores are important, and they can change your financial life. In response to the growing use and importance of credit scores, Congress passed the Fair Credit Reporting Act, and has strengthened the Act through a number of amendments over time. The Act focuses on consumer reporting agencies - the companies that collect consumer credit information and develop credit scores. The Act is intended to promote accuracy, fairness, and privacy of information used by consumer reporting agencies. The Act gives consumers a number of important rights to obtain information about and dispute inaccuracies in their credit files. Statute The Fair Credit Reporting Act is at 15 USC § 1681 et seq. Important Rights Under the Act Rights to information. The Act provides consumers with two important rights to information. First, the law provides that you have the right to know that a credit report was the basis for an adverse employment, credit, or insurance decision. The user of the credit information must also provide you with the name, address, and phone number of the agency that provided the information. See 15 USC § 1681m. Second, the law provides that - even without any adverse action - you have a right to know the information about you contained in the files of a consumer reporting agency. You have the right to obtain a copy of that information. In fact, once a year, you may obtain the information for free from each of the three credit reporting agencies. See 15 USC 1681j. To obtain a free copy of your credit information, you can (1) go to www.annualcreditreport.com; (2) call 1-877-322-8228; (3) fill out the form at www.ftc.gov/bcp/conline/include/requestformfinal.pdf and mail it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281; or (4) go to http://www.lsnv.org/Free_Credit_Report_Index.pdf. Right to dispute inaccurate information. Not only does the Act provide you with the right to know the information in your credit file, it also gives you the right to dispute inaccuracies in that information. Suppose, for instance, that you paid off a loan but it still appears in the report. Perhaps there is a report by a credit card company that you failed to make timely payments, but your records show otherwise. You can dispute this type of information, and the Act sets forth a procedure for such disputes. See 15 USC § 1681i. To initiate a dispute, write to the credit reporting agency. Your letter should: identify the information that you believe is inaccurate; state the facts and explain why you believe the information is inaccurate; provide copies (not originals) of documents (e.g., billing statements) that show the information to be inaccurate; and request that the agency remove the inaccurate information You may include a copy of your credit report with the disputed items circled. Send your letter by certified mail. (See also http://www.ftc.gov/bcp/menus/consumer/credit/rights.shtm Whenever a consumer disputes the accuracy of any information in the consumer's file, the Act requires the credit reporting agency to conduct a "reasonable reinvestigation" to determine the accuracy of the information or delete the information within 30 days (45 days if you provide further information during the 30 day period). See 15 USC § 1681i(a)(1)(A). The agency must also, within 5 days, notify the provider of the disputed information (e.g., the credit card company that reported late payments). See 15 USC § 1681i(a)(2)(A). If the agency, after reinvestigation, determines that the dispute is frivolous or irrelevant, the agency must notify you. This finding may, for instance, be caused by your failure to provide sufficient information for the agency to investigate the dispute. The notice must state (1) the reasons for the determination and (2) identify any information it needs to conduct the investigation. See 15 USC § 1681i(a)(3). If, however, the agency finds that the disputed information is "inaccurate or incomplete or cannot be verified," it must (1) delete or modify the information in your file and (2) notify the provider of the information (e.g., the credit card company). See 15 USC § 1681i(a)(5)(A). Such information cannot be reinserted unless the provider of the information certifies that it is complete and accurate. The agency must notify you of a reinsertion; notice must be in writing, sent within 5 days, and provide the name and address of the information provider. See 15 USC § 1681i(a)(5)(B). Whatever the result of a reinvestigation, the agency must notify you of the outcome and provide: (1) a statement that the reinvestigation is complete and (2) a consumer report based on the revised information. See 15 USC § 1681i(a)(6)(B). If the disputed information was deleted from your file, you may request that the agency furnish notifications of the deletion to anyone you designate that has received your consumer report within the last six months (or two years if used for employment purposes). See 15 USC § 1681i(d). If the resolution of your dispute is not satisfactory, you have several rights. You have the right to request a description of the investigation. See 15 USC § 1681i(a)(7). You have the right to add a statement to your file summarizing your dispute regarding the accuracy of the information. See 15 USC § 1681i(b). The consumer reporting agency must include your statement in any subsequent report (unless there are reasonable grounds to believe that the dispute is frivolous or irrelevant). See 15 USC § 1681i(c) In addition, you may also raise your dispute directly with the creditor that provided the information that you believe is inaccurate. Rights to damages. The Act also provides that you have the right to obtain damages from anyone who fails to comply with the requirements of the Act. If the failure is willful, you may be entitled to actual damages caused by the failure (or statutory damages between $100 and $1000), punitive damages, costs of suit, and attorneys fees. See 15 USC § 1681n. If the failure is due to negligence, you may be entitled to actual damages caused by the failure, costs of suit, and attorneys fees. See 15 USC § 1681o.

HUNDTOFTE v. ENCARNACION, 280 P.3d 513

Note: there are limits to reporting obsolete information. Most adverse information more than 7 years old may not be reported. There are five exceptions: 7 year period is what different for certain types of information (an account turned over to collections, add 180 days.) A 10 year rule applies to bankruptcies A 1 year rule applies to prescreening inquiries Criminal convictions never grow obsolete Obsolete information can be reported in certain situations involving transaction exceeding a specific dollar amount.