Consumers need to be aware of their rights when it comes to fair credit reporting and debt collection. For example, did you know that you can sue debt collectors and credit bureaus if their conduct does not conform to acceptable business practices? What exactly is considered acceptable? Can debt collectors threaten to put you in jail? Can credit bureaus continue to list negative entries, even after they are proven false? How long should negative items stay on your credit file?
The Federal Trade Commission controls the functions of consumer credit reporting organizations using the principles outlined in the Fair Credit Reporting Act-FCRA. Credit reporting organizations are made up of three major consumer credit bureaus, Experian, Equifax, and TransUnion along with other corporations that record and maintain detailed consumer files. These files may include a consumer’s purchasing patterns, credit score data, employment, and any legal proceedings. Consequences related to FCRA offenses fall into two main groups; willful violations and negligent violations. Either group may incur fines, legal fees, and criminal prosecution.
Violations of the Fair Credit Reporting Act include any prohibited or deceptive business tactic, providing consumer information to individuals or organizations without the express authorization of the consumer, and itemizing validated discrepancies in a consumer’s credit file. Validated discrepancies include instances of a specific record being eradicated from a consumer’s credit file and ultimately reinserted. In these cases, the credit bureau must notify the consumer in writing about the reinsertion of the specific item within five business days. Other crimes related to consumer reporting include the requirement that businesses notify employees and prospective employees in writing if the business decides to obtain a consumer report regarding employment. Consumers and corporations should understand the full scope of the FCRA to ensure they are aware of potential violations.
Debt collectors are also subject to the rules set forth in the Fair Debt Collection Practices Act-FDCPA. Know your rights in relation to debt collection and you will be surprised at what you discover. For example, did you know that debt collectors can only call you at certain times of the day? Are they allowed to call their neighbors and tell them about their supposed debt? Did you know that you can stop phone calls altogether? Not all debt collectors and buyers follow the FDCPA guidelines; Know your rights and avoid falling victim to unscrupulous debt collection practices.
