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FTC Letters
Feburary 23, 2004 Carmel Credit & Consulting Dear Bernard H. Todesco, Thank you for your letter to the Federal Trade Commission ("the Commission"). The Federal Trade Commission acts in the public interest to stop business practices that violate the laws it enforces. Letters from consumers and businesses are very important to the work of the Commission. They are often the first indication of a problem in the marketplace and may provide the initial evidence to begin an investigation. The Commission is not authorized by Congress to resolve individual complaints. The Commission can, however, act when it sees a pattern of possible violations developing. The decision to open up an investigative action depends on how widespread the practice is, how many consumers are hurt, how much harm is done and how much evidence we have. We must also determine how much staff time and effort we can put into each case, and we must concentrate on the most urgent problems. Letters such as yours provide valuable information that may be used to develop or support Commission enforcement activities. Your letter will be added to our files for that purpose. We appreciate your taking the time to write. Sincerely, December 22, 2004 Carmel Credit & Financial Consulting Re: FTC Ref. No. 1074774 Dear Bernard H Todesco: Thank you for your recent inquiry about credit. The Federal Trade Commission does not collect or keep credit records on individual consumers, although it is responsible for making sure that credit bureaus maintain practices and procedures so that they report accurate and up-to-date information. If you have recently been turned down for credit, the denial notice you received from the creditor must tell you the credit bureau they used. You have the fight to request the information in your credit fille from the credit bureau that supplied the information. If you make the request for information within 60 days after you receive notice of denial of credit, the information will be free. You can request the information over the phone, but you may be asked to fill out forms. You also have the right to request the information at other times, but you may have to pay a reasonable fee. Outlined below are some provisions of the Fair Credit Reporting Act. The Fair Credit Reporting Act ("FCRA") became effective in 1971 and was amended in 1996. It was designed to protect consumers against the circulation of inaccurate or obsolete credit information. Negative credit information, if accurate, generally may be reported for 7 years with the exception of a bankruptcy, which may be reported for 10 years. Section 611 of the FCRA provides the procedure to be followed if the consumer disputes the accuracy of information in the consumer's file. If information in your file is inaccurate, you should write both the credit bureau and the creditor or other party who furnished the inaccurate information to the credit bureau and tell both of them that a dispute exists. You should provide both of them with any information that you have that will assist them in investigating your dispute. You should dearly state the facts concerning the disputed item and include copies of any letters or other documents that support your position. We suggest that you send your letters via certified mail, and that you retain a copy for your records. Credit bureaus are required to investigate your dispute within 30 days. The creditor or other entity must also conduct a reinvestigation and notify the credit bureau of the results within that 30-day period. If the item is wrong or can no longer be checked, it must be corrected or dropped from your file. If the item is verified by the creditor (or other information furnisher) and accepted by the credit bureau, the information will remain on your credit report. After the investigation, the credit bureau will send you an updated copy of your credit report. You have the right to ask the credit bureau to send your updated report to anyone who has received a copy of your credit report within the last six months (two years if sent to an employer or potential employer). You may be charged a small fee for having these updated reports sent. If information is removed from your credit file because it is inaccurate or has not been verified within the 30-day period, it can only be reinserted in the file if the creditor or other furnisher of information certifies its accuracy to the credit bureau. In turn, the credit bureau must notify you that the information is being reinserted. Finally, if, after the credit bureau has concluded its investigation, you still don't agree that your report is accurate, you should write a short statement of 100 words or less giving your side of the situation. This statement or a summary of it then becomes part of your credit report. Another regulation may also help you. If you feel that your credit report does not accurately portray your creditworthiness, Regulation B -- which implements the Equal Ct Opportunity Act, provides that you have the right to present information to a prospective creditor to show that your credit report does not reflect your ability or willingness to repay. The creditor must consider this information at your request. If you know there is adverse information on your credit report, it is often best to explain the circumstances surrounding that item and provide other positive information to the creditor at the time you complete an application. We cannot act as your lawyer or intervene in a dispute between a consumer and a credit bureau or between a consumer and a creditor or furnisher of information. The private enforcement provisions of the FCRA permit the consumer to bring a civil suit for willful noncompliance with the Act. You may receive actual damages or punitive damages up to $1,000 (Section 616). You may also sue for negligent noncompliance and recover actual damages sustained by you (Section 617). Attorney's fees, as determined by the court, will be allowed for both forms of action. If you believe the FCRA has been violated, we suggest that you consult a private attorney or your local legal services organization. Thank you for writing to the Commission. I hope the information we have provided is helpful. Sincerely, |