umers Win Some, Lose Some.
Can I be confident the credit bureau will adequately investigate my dispute?
Unfortunately, you cannot be sure your dispute will get the attention it deserves. The bureaus have been widely criticized for using an automated dispute resolution process. Generally, companies that furnish negative information that is the subject of a dispute receive an automated, coded message from the bureau.
Is there more I should know if I'm a victim of identity theft?
As we explained above, if you are a victim of identity theft or suspect your SSN may be compromised, you can get a free copy of your credit report from each of the major credit bureaus. The free copies are mailed to you when you call the credit bureaus to establish a fraud alert. When creditors encounter the fraud alert, they are supposed to contact you to determine if it is truly you or if it is an imposter making the application for credit.
What about "freezing" my credit reports?
Individuals can "freeze" their credit report so it can only be accessed in very limited situations. With some exceptions, this option is offered free to victims of identity theft who provide a police report to the credit bureaus. Those who are not victims of identity theft may have the option of freezing their credit reports for a fee.
For more information about credit freezes, see:
Can I have negative information deleted if the entry is not an error?
After seven years, negative information in your report should automatically be deleted. The seven years begins 180 days from the date of the original delinquency. A Chapter 7 bankruptcy should be deleted after 10 years from the filing date. A Chapter 13 bankruptcy, which includes some debt repayment terms, remains on your credit report for seven years. Otherwise, negative information will remain in your file for the period allowed by law. You may include in your 100-word explanation any extraordinary circumstances that led to the negative information, such the loss of a job or illness.
Companies or individuals promising quick fixes are almost always fraudulent. The important thing to remember is that no one can have accurate information removed from the credit file. The law offers some small protection to consumers who deal with so-called "credit doctors" or "credit repair clinics." Such companies are prohibited from charging a fee before completing a promised service.
A better alternative for help with re-establishing good credit is to contact a member agency of the National Foundation for Consumer Credit, such as the Consumer Credit Counseling Service. These nonprofit groups have offices in most cities. To find the office nearest you, call or write:
National Foundation for Consumer Credit, Inc.2000 M Street, NW Suite 505, Washington, DC 20036 (202) 677-4300
Beware of other credit repair services. Generally they promise a lot, charge a lot and, deliver little. For more information about credit repair services see http://www.consumer.ftc.gov/articles/0058-credit-repair-how-help-yourself .
5. Uses of Credit Reporting for Marketing: What Is and Is Not Allowed?
Can the information in my credit file be used for any other purposes ?
Yes. The practice of generating and selling lists for use in "pre-approved" credit and insurance offers is allowed by law. TransUnion, Experian and Equifax all engage in selling lists of consumers who meet certain criteria in order to receive a "firm" offer of credit or insurance. This is the source of the many pre-approved credit offers most consumers receive in the mail.
"Pre-approved" and so-called "firm" offers of credit, however, can be somewhat misleading. If you respond, the creditor may access your report before you are actually granted credit. They can deny your credit application at that time. This is explained in the fine print on the pre-approved offer.
How to opt out: You can remove your name from any marketing list compiled by a CRA, whether the list is for pre-approved credit offers or direct marketing. To "opt-out," that is, to remove your name from mailing lists compiled by credit b