Free credit reports begin today

Kevin Rademacher

Wednesday, Dec. 1, 2004 | 11:14 a.m.

Consumers can access one free credit report a year through the following sources:

For years, consumer advocates and law enforcement officials have been encouraging consumers to check their credit reports in order to spot instances of identity theft and reporting errors.

Starting today, residents of Nevada and 12 other Western states can check that report for free. The Federal Trade Commission has ammended the Fair Credit Reporting Act requiring the three nationwide consumer reporting companies -- Equifax, Experian and TransUnion -- to provide one free report to consumers every 12 months.

The mandate will go into effect in Midwestern states on March 1, Southern states on June 1 and Eastern states on Sept. 1.

Access to free reports was hailed in Las Vegas by both consumer advocates and lenders.

"Free access to their credit report will allow more consumers to start working on improving their credit and ultimately allow them to purchasing a home and many other consumer goods," said Gail Burks, chief executive of the Nevada Fair Housing Center.

Bill Uffelman, chief executive of the Nevada Bankers Association, agreed.

"Credit is an important thing," he said. "Having an accurate credit report is certainly a benefit to the consumer and the potential lender."

Burks pointed out that bad credit, or a bad credit report, can cost consumers through higher interest on a home or car loan, as well as some other unexpected costs. Some utilities require deposits for customers with bad credit, and some employers examine credit scores as part of background checks. With that in mind, consumers must know whether their report is accurate, she said.

"Now we have a way to keep the credit reporting agencies accountable for providing accurate information," Burks said. "It's important to realize how much power (the agencies) have over lives ... It's in the best interest of consumers to see what's in there."

Burks said the center's Consumer Assistance Program sees 30 to 50 consumers a month and about 80 percent of those have some sort of credit problem.

The Federal Trade Commission said consumers can only access the free reports through www.annualcreditreport.com, by calling 877-322-8228 or by mail at Annual Credit Report Request Service, P.O. Box 105281, Atlanta 30348-5281. Those requesting the report by mail will need to fill out a request form.

Reports accessed through the Internet should be available immediately, and phone or mail requests will be processed within 15 days, the FTC said.

Credit reporting agencies are not required to give out free reports if contacted directly.

The FTC also recommends getting free copies from each of the three agencies, since they all get information from different sources. The FTC also said that consumers are entitled to additional free reports if a company takes an adverse action against you, such as denying a credit or loan application.

Under the Fair Credit Reporting Act, both the consumer reporting company and the information provider are required to correct inaccuracies, the FTC said. Consumers should tell the reporting company in writing what items are in dispute,

Consumer reporting companies must investigate the items in question -- usually within 30 days -- unless they consider your dispute frivolous. They also must forward all the relevant data you provide about the inaccuracy to the organization that provided the information. After the information provider receives notice of a dispute from the consumer reporting company, it must investigate, review the relevant information and report the results back to the consumer reporting company.

If the information provider finds the disputed information is inaccurate, it must notify all three nationwide consumer reporting companies so they can correct the information in your file.

When the investigation is complete, the consumer reporting company must give you the written results and a free copy of your report if the dispute results in a change. This free report does not count as your annual free report under the new rules.

If an item is changed or deleted, the consumer reporting company cannot put the disputed information back in your file unless the information provider verifies that it is accurate and complete. The consumer reporting company also must send you written notice that includes the name, address and phone number of the information provider.

The FTC also said consumers should tell the creditor or other information provider in writing that you dispute an item. If you are correct, the information provider may not report it again.