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