Credit Reporting During and Post-Pandemic: Your Rights as a Consumer
Your credit report, along with your credit score, is an important piece of information—one which can make a big difference in whether your loan or credit applications are approved, and the conditions and rates that you are offered. As such, it is important to be aware of the many protections offered to consumers regarding credit reports.
What consumer protections exist regarding credit reporting?
Consumers enjoy credit reporting protections under both federal and state laws. The federal Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and privacy of information in the files of consumer credit reporting agencies. Those agencies include credit bureaus, medical and rental history reporting agencies, and other specialty agencies. Although consumer credit reporting agencies do not make decisions based on your credit (such as whether to approve you for a loan or new credit account) they do provide information to banks, mortgage companies, card companies, and others. In turn, those entities use the reporting agencies’ information to make decisions about extending credit, interest rates, and loan conditions.
The FCRA offers many important protections to consumers, including:
· The right to ask for your credit score;
· The right to dispute incorrect, inaccurate, incomplete, or unverifiable information;
· The right to ask the agencies to correct and remove unverified inaccurate information;
· The right to obtain a security freeze on your credit report;
· The right to know what is in your files;
· The right to have protected access to your information, meaning that only authorized parties are available to see or use your credit report;
· The right to information if your file has been used against you, such as in denying a credit application;
· The right to receive potentially negative information.
In addition to the FCRA, state laws also protect consumers’ rights to fair and accurate credit reporting. Massachusetts, for example, has its own Fair Credit Reporting Act in place to protect its residents.
What specific protections are available as a result of the COVID-19 pandemic?
If your credit has been affected due to the COVID-19 pandemic, you should consider whether any federal or state laws provide potential relief. For example, the Coronavirus Aid, Relief, and Economic Security (CARES) Act has forbearance and credit reporting requirements that may apply to your situation, notes an article by the Consumer Financial Protection Bureau. The CARES Act allows for certain accommodations, including agreements to do the following:
· Defer or pause one or more payments
· Make a partial payment
· Forbear (temporarily stop paying) any delinquent amounts
· Modify a loan or contract
· Receive a suspension for federal student loan payments
· Other assistance or relief
Where can I find additional information?
The following resources can be helpful in learning more about consumer credit reporting protections:
If you believe your rights as a consumer were violated in regards to credit reporting, the MCC Law Center might be able to help. The MCC Law Center Local Consumer Program works in cooperation with the Massachusetts Attorney General's office to provide free consumer services and help resolve consumer complaints. Contact us for more information.
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