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Credit Reports

  • You have the right to know what information is in your credit report.
  • You have the right to dispute the completeness and accuracy of items in your report.
  • Credit reporting agencies must reinvestigate items in your report that you dispute as inaccurate or incomplete unless they have reason to believe the dispute is frivolous or irrelevant.
  • Accurate negative information can be reported for seven years; facts about bankruptcies can be reported for 10 years.

Obtain Your Credit Report if you have been denied credit, insurance or employment because of information that was supplied by a credit reporting agency, the Fair Credit Reporting Act requires that you be given the name and address of the credit reporting agency that supplied the information. If you contact that agency within 30 days of the denial notice, your report is free. If you simply want a copy of your report, call the credit reporting agencies listed in the Yellow Pages under 'credit' or 'credit rating and reporting'. You may have to pay a reasonable charge for each report. How to Correct Errors. You have the right to dispute information your report. The reporting agency must reinvestigate and record the current status of the disputed items within a reasonable period of time, unless it believes the dispute is frivolous or irrelevant. If a reinvestigation does not resolve your dispute, you may file a statement of up to 100 words to explain your side of the story. The credit report must include this explanation.
To register a dispute, you must make your dispute directly to the credit reporting agency. Although not required by law, the Federal Trade Commission recommends that you submit your dispute in writing along with copies (not originals) of any documents that support your position. Provide your complete name and address and identify each item in your credit report you dispute. Explain why you dispute the information, state the facts and ask for deletion or correction. Send your dispute by certified mail, return receipt requested, and keep copies of your letter and enclosures. For further information, you may wish to contact the nearest regional office of the Federal Trade Commission. You can obtain the telephone number by calling the Federal Information Center listed in your telephone book. Source: Facts for Consumers, Federal Trade Commission, Bureau of Consumer Protection, Office of Consumer & Business Education. April 1994.

Credit Repair/Credit Doctors

Consumers who are having difficulty obtaining a credit card, loan, or making a major purchase because of a bad credit history, may be tempted by offers that promise to "fix" their credit reports. The BBB advises against paying large sums of money for something that may not work, or could be taken care of for free. For fees ranging from $50 to several thousand dollars, so-called "credit repair" companies claim they can remove negative credit information from a credit file, even if the information is accurate. This just isn't true. After taking your money, the company may do little, or nothing to improve your credit report -- it may even vanish, but the information in your credit file won't.

According to New York State law, it is illegal to charge advance fees for credit repair services. No payment is due until all of the services listed on the credit repair contract have been completed. Also, contracts must contain a detailed explanation of the services rendered. Consumers may obtain a copy of their credit report by contacting the local credit bureaus (listed in the yellow pages under credit reporting agencies or credit bureaus). Credit bureaus keep track of payments on loans and bills. If information contained in your credit report is inaccurate or outdated, it may be fixed by the consumer, at no charge, by contacting the respective credit bureau. Copies of your credit report are available for a nominal fee, unless you are turned down for credit within the previous 30 days, in which case the report is free.

Credit Card Offers

First determine who is making the offer. Think twice about the offer if it comes from a company that is not a credit card issuer and if the company requires a fee to process your application. It may only be promoting a credit card used to make purchases from its own catalog. When applying for a credit card, find out about its terms and conditions. What is the annual percentage rate? Is there an annual fee? When evaluating credit card offers consider your bill paying habits. Make sure to get details about the offer in writing. If you're having difficulty obtaining credit, be leery of ads appearing in the classified sections of local newspapers, offering guaranteed credit cards for advance fees, regardless of credit history. A word of caution: you will pay more if you deal with a credit card broker instead of directly with the bank issuing the credit card. Credit card brokers often receive payment from the bank on each new client they bring in.

Credit Cards--Your Liability

If your credit card(s) is (are) lost or stolen, you have the option of contacting your card issuer directly without going through a third party. Under federal law, if you report the loss of your credit card or automatic banking card before it is used, the card issuer cannot hold you responsible for any unauthorized charges. If your card is used before you report it missing, the most you will be responsible for is $50. If you are considering using a credit card protection service, be sure to read the contract carefully to check the company's obligations and any liability on your part should the company fail to notify credit card issuers.

Bankruptcy

Declaring bankruptcy won't cure your credit woes. Bankruptcy should only be used as a last resort in extreme circumstances. It remains on your record for up to ten years, and it may be difficult to obtain loans. It can also scare off potential employers or landlords. Not all debts are forgiven when you declare bankruptcy. Your assets may be sold to satisfy some of the debts. You may still be responsible to pay back some things. You can contact a credit counselor to help work out a payment schedule with your creditors, Many of these services are non-profit organizations. You may also contact the Consumer Credit Counseling Service located at Statler Towers, Buffalo, NY (716) 854-1710.

Bill Paying Services

A for-profit debt consolidation service adds up all your bills and then adds a service fee. This service does not lend you money to pay off your bills. For-profit bill paying services are not legal in many states. There are also non-profit organizations which offer budget counseling and/or debt repayment programs at no charge or for a small fee. For such assistance, you may wish to contact Consumer Credit Counseling Service in Buffalo, NY at (716)854-1710.

Debt Collection

Under the Federal Trade Commission's Fair Debt Collection Practices Act, collection agencies may not use false, deceptive, or misleading representations or means to collect debts. Collectors may not harass, oppress, or abuse any person while attempting to collect a debt. Collectors may not use use any false statements and engage in unfair practices in attempting to collect a debt. A debtor may be contacted between 8 a.m. and 9 p.m. only, and can be contacted at work unless instructed not to. Collectors may not tell others about the debtor's personal finances. You may report any problems you have with a debt collector to your State Attorney General (in New York the number is 1-800-771-7755) and the U.S. Federal Trade Commission at (202)-326-2502 (Ask the FTC for a copy of the Fair Debt Collection Practices Act)

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