What You Need To Know About Fair Credit Reporting

Fair Credit Reporting is guided by the 2003 Act of the Accurate Credit Transaction. It serves to protect the interest of customers. It improves the accuracy of customers’ credit-related records at the same time protecting them from theft. The act provides customers with the right to a one free credit report every year. It demands customers’ information privacy and advocates its protection.

Under this Act, Equifax, Experian, and Trans Union are used. The statute required that all credit-reporting agencies have a business website, AnnualCreditReport.Com that should provide customer free access to their reports. It has seven guidelines that restrict the work of agencies. They include the following.

Theft Prevention and Credit History Restoration

This title deals with the protection of customers from theft. It allows customers to indicate a fraud alert on their credit report at the same time alert deployed military. The warning remains on customers file for 90 days. The concerned credit reporting agencies must notify all other agencies of the said alert.

Additionally, a report from the military or any active duty remains on customers file for one year and but the customer can request an extension for up to seven years.

Truncation of credit and debit card numbers

This title prohibits business owners from printing over five digits numbers of their customers’ business card or account number. It also bans printing expiration date on receipt during the time of sale.

Identification of possible identity theft

ThisIt is the Red Flags Rule. It requires Federal banking agencies and the Federal Trade Commission to monitor theft-taking place within institutions of finance. It does this by tracking consumer address and patterns and conduct theft education programs.

Protection and Restoration of Theft victims Credit History

This provision monitors on how reporting agencies can help victims of fraud retain back their financial reports after a theft. It requires Federal banking to come up with a summary of customers’ rights following a set procedure to rectifying a fraud. It requires all reporting agencies to gives accounts of all customers who have been victims of fraud.

Confusion with scope

This rule started its operation in the tear 2010. It compels agencies to form a framework to foresee the risk of identity theft. It applies to all financial institutions and business companies.

Coordination of identity theft complaint investigation

This provision requires that all agencies work together to protect their customers. They must develop an effective means of communication towards each other. The rule aimed at safeguarding customer in all quarters.

Blocking of information resulting from identity theft

The seventh provision allowed reporting agencies to prevent information on a customer’s file suspected to have originated from identity theft. Reporting agencies were compiled to block information within four days when they receive proof of theft.