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Credit
Damage
Beware the Shark
 It
is fraud victims' worst nightmare: The sharks: Credit Reporting Bureaus.
Whether
your a fraud victim, or just a victim of careless / negligent credit
reporting bureaus, the outcome is the same:
The
practice of employers checking your background using Investigative
Consumer Reports to decide if you make a good employee is common practice.
The
problem is, especially for fraud victims, is the reports are misleading,
especially when identity theft is involved.
Enforcing
Your Rights
Filing
Suit and Complaining to Government Agencies
Q: What
can I do if my rights under the FCRA have been violated? Where can
I complain?
A: You
may sue a CRA or a company that provides data to a CRA in federal or
state court. If you win, you may be entitled to recover an amount for
damages you have actually incurred or a maximum of $1,000, whichever
is greater.
You
may also recover court costs and attorney fees. In addition to filing
your own lawsuit, you may complain to the FTC or your state Attorney
General's Office. Although government agencies do not represent individual
citizens, agencies charged with enforcing laws such as the FCRA do
investigate reported violations. In most cases, an agency's primary
source of information is complaints from the public.
While
the FCRA is generally enforced on the federal level by the FTC, compliance
by those who use or furnish information to a CRA may be enforced by
other federal agencies such as the Federal Deposit Insurance Corporation
and the Comptroller of the Currency. Complaints of violations of the
FCRA may also be filed with those agencies. Other federal agencies
with authority to enforce the FCRA can be found at the end of this
fact sheet.
Investigative
Consumer Reports
Employment,
Insurance, and Rental Housing
Q: How
does an investigative consumer report differ from a credit report?
A: Some
credit reporting agencies and investigation companies compile what
is known as "investigative consumer reports." Such reports
are defined under the FCRA as: a consumer report or portion thereof
in which information on a consumer's character, general reputation,
personal characteristics, or mode of living is obtained through personal
interviews with neighbors, friends, or associates, and includes things
like lawsuits and bankruptcies.
An
investigative consumer report is used in employment background checks,
insurance, and rental housing decisions. An investigative consumer
report does not contain information about your credit record that is
obtained directly from a creditor or from you.
California
's law that governs background checks is somewhat different from
the federal FCRA. California has a separate law that governs credit
checks. (CA Civil Code §1785 et seq.)
Q: How
do I know when an employer or landlord is using the ICR?
A: Federal
law requires the employer to get your permission before they get access
to the ICR on you. Many people do not realize that the job application
seeking your SS# and permission to check on you means access to the
ICR. An
exception would be, for example, if an employee were being investigated
for possible criminal activity.
Q: What
if can I do if I don't get a job because of the information?
A: WJFA
recommends that anyone filing for a job that requires you provide your
SS# and permission to check, to ask the company for a copy of the signed
application. Then ask the person to sign and date the top. You will
need this copy.
If
the information obtained in the report is used by the employer to make
a negative hiring decision, the employer must give the applicant a
copy of the report. You have the same rights to correct and dispute
inaccurate information in an investigative report as you have in a
credit report.
But,
many people report giving permission for the report and then never
hearing back from the employer. They are left hanging not knowing why
they did not get the job.
If
you suspect the report was damaging, write a letter to the agency requesting
a copy of the report sent to the employer. Be polite and do not accuse
or imply any wrong doing by the employer. Include a copy of the application
with the letter.
For
more information about Investigative Consumer Reports, see:
* The
FTC's guide
* PRC
Fact Sheet 16, Employment Background Checks: A Jobseeker's Guide
* Fact
Sheet 16a, Employment Background Checks in California
General
Information
Credit
Reporting Bureaus
The
three credit bureaus are a source of information regarding credit reports
and credit reporting. See also their trade organization, the Consumer
Data Industry Association.
Equifax,
Inc.
P.O. Box 740241
Atlanta, GA 30374
(800) 685-1111
Experian
National Consumer Assistance
P.O. Box 2104
Allen, TX 75013-2104
(888) 397-3742
Trans
Union LLC
Consumer Disclosure Center
P.O. Box 1000
Chester, PA 19022
(800) 888-4213
Federal
Trade Commission:
The
federal government agency that oversees the credit reporting agencies
is the Federal Trade Commission (FTC). It has developed several informative
brochures on credit-related topics. If you have a complaint about a
credit bureau, you may report to the FTC online, by mail, or by calling
the toll-free number.
Federal
Trade Commission
Consumer Response Center
600 Pennsylvania Ave. N.W.
Washington, D.C. 20580 (877) FTC-HELP
(877-382-4357)
TDD (202) 326-2502
Surveys and reports:
* A
Consumer Federation of America (CFA) survey released
July 2003 shows consumers lack essential knowledge of credit reporting
and credit scores.
* PIRG study
released in 2004 revealed a high degree of inaccuracies in credit reports.
* U.S.
Federal Reserve. A report released
in 2003 examines the credit reporting industry and the content
of credit reports. This is a link to a pdf.
* Credit
Scores & Credit Reports: How
the System Really Works, What You Can Do, by Evan Hendricks, Privacy
Times, 2004.
Credit
reporting laws:
*
Federal law -- Fair Credit
Reporting Act: 15 USC 1681 et seq. For
the full text of the FCRA. A credit report is just one kind of consumer
report covered by the FCRA. Changes to the FCRA were made in December
2003, with the Fair and Accurate Credit Transaction Act (FACTA).
* California
Consumer Credit Reporting Agencies Act: Calif Civil
Code sec. 1785 et seq.
* California
Investigative Consumer Reporting Agencies Act: Calif
Civil Code sec. 1786 et seq.
* Privacy
Rights Clearinghouse Fact Sheet
* Consumers
Union summary
* National
Consumer Law Center summary
Government
agencies:
* Federal
Trade Commission
* U.
S. Comptroller of the Currency, (800) 613-6743
* Federal
Deposit Insurance Corporation (202) 393-8400,
* Federal
Reserve Board (202) 452-3693,
* California
Department of Consumer Affairs (800) 344-9940,
Consumer
organizations:
* Consumer
Action (guides in English, Spanish and Chinese)
* Consumer Federation of
America
* Consumers Union
* U.S.
Public Interest Research Group (USPIRG)
Copyright
2007 by WJFA. All rights reserved. This material on this web site
may not be published, broadcast, rewritten or redistributed. See
WJFA's Disclaimer and Privacy
Policy. Contact the webmaster to
report problems with the web site.
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