Credit Repair Organization Act
Chicago Consumer Lawyers
If you’re looking to repair your credit, the first place you’ll need to start is by looking at your credit report. Your credit report measures your overall creditworthiness by showing your borrowing history and how diligent you have been in paying your debts. Those with the highest credit scores get the best mortgage terms, interest rates, car loans, and credit cards, while those who struggle with debt could face major difficulties in these and other areas.
While it may take time to rebuild your credit, you can boost your score by carefully monitoring your credit report and understanding what is and is not included on the report. Understanding how certain elements affect credit is an important part of maintaining it, especially when it comes to errors on your report.
Credit reporting errors are more common than you might imagine, and if they are not addressed, can have a negative effect on your ability to obtain financing or important loans. If you notice any irregularities on your credit report, report them at once to the credit agency. If the errors are not correct in a timely manner, it is in your best interests to speak with an attorney at Atlas Consumer Law to assert your rights under the Fair Credit Reporting Act.
Federal Requirements for Credit Reporting
Federal statute 15 U.S.C. 1681c determines what can and cannot be included in a credit report.
A credit report is required to indicate the following:
- If a person chooses to close an account, that information must be indicated if the account is included on the report.
- If a credit score or predictive measure of risk is reported, the score must identify any key factor that negatively affected the score.
- If a person properly disputes credit information, the dispute must be noted if the disputed information is included on a report.
- If a bankruptcy is reported, the Chapter of bankruptcy must be listed; and if the consumer voluntary withdrew the bankruptcy case before obtaining a judgment, the report must indicate the voluntary withdrawal.
The following information cannot be included in a credit report:
- Civil judgments, civil suits, and records of arrest that, from date of entry, predate the report by seven years of more, or until the governing statute of limitations has expired (whichever period is longer)
- Paid tax liens preceding the report by more than seven years
- Cases under title 11 or under the Bankruptcy Act that precede the report by 10 years or more
- Accounts charged to profit and loss or placed for collection which antedate the report by more than seven years
- Any other adverse item of information predating the report by seven or more years
- The name and contact information of any medical information furnisher that has notified the credit reporting agency of its status, unless:
- such information is restricted or reported using codes that do not identify, or provide information sufficient to infer, the specific provider or the nature of such services, products, or devices to a person other than the consumer; or
- the report is being provided to an insurance company for a purpose relating to engaging in the business of insurance other than property and casualty insurance.
These rules do not apply if the report is for life insurance or a loan in an amount of $150,000 or more, or for a job equaling $75,000 or more.
Are there errors on your credit report? This may indicate a violation of your rights under the Fair Credit Reporting Act. Speak with a Chicago consumer lawyer at Atlas Consumer Law today during an initial case evaluation.
