Credit Report Notifications & The Law
While you’re trying to improve your credit score, you may get blindsided by not getting notified about negative information on your credit report. Indeed, although the Fair Credit Reporting Act (FCRA) outlines requirements for credit report notifications, some creditors – and especially debt collection agencies – do not abide by the law. Here are some examples of credit report notification requirements under the FCRA that will help you as you’re trying to improve your credit score:
Before sending negative information: Creditors must notify you if they are going to place a negative item on your credit report. However, they don’t necessarily have to send you a separate notice. According to the law, the notification can be included with a monthly bill, and say something to the effect that the creditor may report information about your account to consumer reporting agencies, and that late payments, missed payments, or defaults can appear on your credit report.
After sending negative information: If a debt collection agency or creditor reports something negative about your account, they must send a credit report notification regarding that action within 30 days.
Fraud or identity theft: If you have been the victim of fraud or identity theft and have notified a third-party debt collection agency that the debt is fraudulent, the debt collector is required to provide you with a credit report notification about your rights in debt collection.
Items removed following a dispute: When you’re trying to improve your credit score and you dispute an item on your credit report that was later removed, it cannot reappear on your credit report unless you’re notified in writing within five days.
Adverse actions: If you are denied employment, insurance, or credit because of your credit report, the company that denied you must tell you that your credit report was the reason for denial, as well as the name and contact information of the credit reporting agency that furnished the report.
We hope that you find this information useful, and urge you to contact us at 203-529-5100 if you didn’t receive the credit report notifications required under the law, or if you would like help challenging credit report information in order to improve your credit score.