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Legislators Ponder New Credit Protection Laws
Legislators in Washington, D.C. are considering several
credit-related consumer protections as outlined in The Fair and
Accurate Credit Transaction Act of 2003 (H.R. 2622). If approved,
consumers could benefit from the most wide-ranging changes to the
rules covering consumers and credit in decades.
One of the most important changes would be the right to
receive a free annual copy of your credit report, upon request,
from the three major credit reporting agencies: Equifax,
TransUnion and Experian. Currently only six U.S. states offer
their residents this form of consumer protection. Federal law
requires that a consumer may obtain a free copy of their credit
report only if they have been denied a loan or credit based upon
information contained in their credit reports.
Other highlights of The Fair and Accurate Credit Transaction
Act of 2003 include:
- special notifications whenever excessive inquiries (credit
checks by potential lenders and creditors) are lowering your
credit scores significantly;
- notification by creditors whenever they are sending
derogatory account information to any of the national credit
reporting agencies;
- blocking negative credit information caused by an identity
thief from reappearing on credit reports;
- mandating creditors to establish guidelines to prevent them
from issuing credit deemed likely to be fraudulent;
- the disclosure of credit scores used in connection with
loan application decisions and an explanation of the key
factors that were used to determine that score;
- requiring the disclosure of the name, address, and
telephone number of businesses that supply information to
credit bureaus.
At first glance this bill appears to offer valuable credit
protections for consumers. However, there are others who feel
this legislation either doesn't do enough or even reduces
consumer rights. The proposed federal law could replace tougher
laws already in place in some states and that has consumer
advocates concerned.
For an in depth analysis of H.R. 2622 by leading consumer
advocates, visit http://www.privacyrights.org/ar/HR2622Analysis.htm
Lawmakers and consumer groups agree that changes need to be
made to better protect consumers and their credit rights. Whether
or not The Fair and Accurate Credit Transaction Act can address
these concerns remains to be seen.
About The Author
© 2003, www.yourfreecreditreportnow.com
James is editor of "To Your Credit" a FREE weekly newsletter
for consumers. You can subscribe at http://tinyurl.com/bgo9; jimdim815@aol.com
MORE RESOURCES:
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