Several folks have asked me recently to explain credit reporting agencies and fraud alerts in this column. Because holiday gift shopping is fast approaching (or already here for bargain hunters), many more identity thieves are skulking in shadowy corners to snatch our financial information.
The Fair Credit Reporting Act (FCRA) requires each of the nationwide credit reporting companies - Equifax, Experian, and TransUnion - to provide consumers with a free copy of their credit report, on request, once every 12 months. A credit report includes information on where you live, how you pay bills, and whether you've been sued or filed for bankruptcy. Nationwide credit reporting companies sell the information in your report to creditors, insurers, employers and other businesses that use it to evaluate your applications for credit, insurance, employment or renting a home.
The law allows us to order our reports from each of the three nationwide credit reporting companies at the same time or to order the report from each company one at a time.
The only valid method of order is at annualcreditreport.com, call 1-877-322-8228 or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
Don't make the mistake of ordering from imposter websites; not only do they take your money, but you're handing over your Social Security info needlessly.
If you get an email, see a pop-up ad or get a phone call from someone claiming to be from annualcreditreport.com or any of the three nationwide credit reporting companies, do not reply or click on any link in the message. It's probably a scam. Forward any such email to the FTC at spam@uce.gov.
Provide the following info to obtain your legitimate reports: name, address, Social Security number and date of birth. If you have moved in the last two years, you may have to provide your previous address. To maintain the security of your file, each nationwide credit reporting company may ask you for some information that only you would know, like the amount of your monthly mortgage payment. Each company may ask you for different information because the information each has in your file may come from different sources.
It's imperative that consumers acquire copies of their reports as it contains information that affects whether you can get and how much you'll have to pay to borrow money.
Moreover, a copy of your credit report makes sure your information is accurate, complete, and up-to-date before you apply for a loan for a major purchase like a house or car, buy insurance or apply for a job.
It helps guard against identity theft to commit fraud.
I always advise getting the three reports at one time and then paying the minimal sum to re-order the three every three-four months. This way, I'm much more likely to catch any error or alert quicker. Because nationwide credit reporting companies get their information from different sources, the information in your report from one company may not reflect the same information in your reports from the other two companies.
That's not to say that the information in any of your reports is inaccurate; it just may be different. Review each report and if you discover any inaccuracies, immediately notify the credit reporting company in writing.
Credit 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 credit reporting company, it must investigate, review the relevant information, and report the results back to the credit reporting company. If the information provider finds the disputed information is inaccurate, it must notify all three nationwide credit reporting companies so they can correct the information in your file.
When the investigation is complete, the credit 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.)
If an item is changed or deleted, the credit reporting company cannot put the disputed information back in your file unless the information provider verifies that it is accurate and complete. The credit reporting company must send you written notice that includes the name, address, and phone number of the information provider.
Finally, if you suspect fraud of any kind, ask the agencies to place a Fraud Alert on your file. This way, if a scammer possesses your personal information, he won't be able to open any new accounts. In fact, the consumer must give his or her personal OK to a lender for a new account, loan, etc., once the Fraud Alert is in place.
Speaking of alert, 'tis the season to stay that way.
Contact Ellen Phillips at consumerwatch@timesfreepress.com.