A federal law, the Fair Credit Reporting Act (FCRA), states insurance companies have a “permissible purpose” to look at your credit information without your permission. Insurance companies must also comply with state insurance laws when using credit information in the underwriting and rating process.

What is the first thing you should do if you find an error on your credit report?

If you identify an error on your credit report, you should start by disputing that information with the credit reporting company (Experian, Equifax, and/or Transunion). You should explain in writing what you think is wrong, why, and include copies of documents that support your dispute.

What triggers FCRA requirements?

The disclosure requirements are triggered when a credit score is used by a person in taking adverse action. Some violations have occurred when persons interpreted the term “use” too narrowly to include only situations when adverse action is solely or primarily based on the credit score.

What do you need to know about Fair Credit Reporting Act?

Under the Fair Credit Reporting Act, you have a right to: Access to Your Credit Report – The act requires credit reporting agencies to provide you with any information in your credit file upon request once a year. You must have proper identification.

What happens when inaccurate information is found in a credit report?

Accurate Reporting – If inaccurate information is discovered in your file, the consumer reporting agency must examine the disputed information, usually within 30 days. If the inaccurate information cannot be verified, the consumer reporting agency has a responsibility to remove it.

When do you have the right to know who requested your credit report?

You also have the right to know who has requested your credit report in the last year or, for employment-related requests, two years. Accurate Reporting – If inaccurate information is discovered in your file, the consumer reporting agency must examine the disputed information, usually within 30 days.

Can you sue under the Fair Credit Reporting Act?

Seek Damages – You have the right to sue and seek damages in a state or federal court from anyone, such as a consumer reporting agency or a user of consumer reports, who violates the Fair Credit Reporting Act.