Free credit report act

Act grants Illinois consumers free copy of credit report

PEORIA - Starting today, consumers in Illinois and several other Midwest states will be able to get their credit reports for free.

As part of the Fair and Accurate Credit Transactions Act and the Fair Credit Reporting Act, Illinois residents now can get a copy of their credit history at no charge.

In December 2003, the Federal Trade Commission amended the FCRA act and required the three consumer credit reporting agencies - Equifax, Experian and Trans Union - to provide consumers, upon request, a free copy of their credit report once every 12 months either online, by phone or by mail.

The federal law was rolled out late last year in 13 Western states and is being phased in nationwide over a nine-month period. After Sept. 1, all consumers can request a free report.

Consumers should take advantage of the opportunity, especially in light of increasing problems of identity theft, scams, and fraud, said Janice Rodgers, associate executive director of the Consumer Credit Counseling Service of Central Illinois in Peoria.

"Everyone should be aware of what's in their credit reports," Rodgers said. "It's also a good reason to know where you are with your finances."

The FACT Act allows consumers a free way to act quickly in the event of identity theft and correct errors on their credit report, she said. In 2003, Americans spent more than 300 million hours trying to resolve problems caused by identity theft, according to Federal Trade Commission data.

Consumers will be able to order one, two or all three reports at the same time or they may stagger their requests, Rodgers said. Some financial advisors say staggering requests over a 12-month period may be a good way to keep an eye on the accuracy and completeness of the information in your reports.

Both the consumer reporting company and the information provider (the person, company or organization that provides information about you to a consumer reporting company) are responsible for correcting inaccurate or incomplete information in your report.

If you find errors - inaccuracies or incomplete information - in the report, contact the consumer reporting company and tell them, in writing, what information you think is inaccurate. The company must investigate the items in question, usually within 30 days, unless they consider your dispute frivolous, according to the FTC. They must also forward the data you provide about the inaccuracy to the organization that provided the information.

When the investigation is complete, the consumer reporting company must give you the written results and a free copy of your report if the dispute results in a change.

The bottom line, says Rodgers, is that your report should not remain a mystery to you because it allows an institution or person, such as a potential lender, credit card company or landlord, to view your credit history and determine whether you would be a good risk for a loan, credit card or home. Your employer can get a copy of your credit report only if you agree, according to the FTC. A consumer reporting company can't provide information about you to your employer, or to a prospective employer, without your written consent.