New rules just implemented will make it easier for people to correct inaccurate information contained in their credit reports.
The Federal Trade Commission adopted the rules July 1 as part of the Fair and Accurate Credit Transactions Act (FACTA).
That’s the same law that lets consumers obtain a free credit report once a year from each of the three major credit reporting companies — Equifax, Experian and TransUnion.
In the past, if people found inaccuracies in the information used to determine their credit scores, they had to go through the credit reporting agencies to get the problem fixed.
But now they can go directly to the providers of the inaccurate information — credit card companies or mortgage lenders, for example — to get it corrected.
“Under the new FACTA rules, furnishers are now required, in most cases, to investigate disputes that are submitted directly to them by consumers regarding the accuracy of information that furnishers provided to a credit reporting agency,” according to a report by lawyer Stephen Freeland of the Kelley Drye firm in Washington, D.C.
Credit scores are important for people trying to buy new homes or cars. So clearly consumers deserve a simple process to challenge what may be inaccurate information on their credit reports.
Whether the new rules truly provide that remains to be seen. As anyone who has dealt with a credit card company or mortgage lender can testify, they don’t always rush to fix mistakes.
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