fis200_week5_reading2ch8

Turned over to collections or when they have obtained

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turned over to collections, or when they have obtained a court judgment against a consumer because the consumer did not live up to the terms of his or her agreement with them. Some gas card companies and credit unions report information about their account holders every month while others do so only when a consumer’s credit account becomes past due. Smaller lenders, such as “Buy here/Pay here” car lots, generally do not report to credit bureaus at all since there is no law requiring them to do so. If there is positive information missing from your credit report, creditors are not required to add what is missing to your report just because you ask them to do so. In other words, you really have little control over what does and does not get reported to credit bureaus. If you manage your credit responsibly and all of the information in your credit file is accurate, you will have a positive credit history. However, if your credit file contains a lot of negative information, just the opposite will be true. FACTA says that when a creditor adds new neg- ative information to your credit record it must inform you of that fact in writing no later than 30 days after the information has been added. Tip Warning Credit Reporting Agencies, Reports, and Scores 159
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Credit Hell Notification can be made via your account billing statement, a default notice, or through some other document provided by the creditor. Who Can Check Out Your Credit Record Information The FCRA limits who can have access to your credit record information (or obtain your credit score) and defines under what circumstances businesses and other organizations can do so, for example: • Creditors can review the information in your credit file in order to help them determine whether or not to give you new or additional credit and what terms to offer you, whether to change your credit limit or to cancel your account. They can also look at your infor- mation in order to decide if they should write off a past due debt or turn it over to collections. • Insurance companies can look at your credit file to help them decide if they want to sell you new or additional insurance and whether to increase your premium. There is a high correlation between having a bad driving record and a poor credit history. Employers can check out your credit record informa- tion in order to determine whether or not to hire you, promote you, demote you, or fire you. However, they must get your permission first. Warning 160
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• Investors and loan servicing companies can look at your consumer credit record information to help them evaluate the risks associated with an existing obliga- tion you have with them. • State and local child support enforcement agencies can review the information in your credit record to help them decide how much child support you must pay and to help them enforce a court order obligating you to pay child support.
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  • Spring '12
  • zinctolg
  • credit score, Credit history, Fair Credit Reporting Act, CREDIT REPORTING AGENCY, credit reporting agencies

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