Home > Credit Rights for Consumers

Date: November 22, 2002
By:      Mark Williams

Credit rights fundamental to operation of credit bureau

Credit rights for consumers are key to the way credit bureaus handle enquiries, complaints and interactions with the general public. Every consumer has the credit right to place a 50-100 word statement with every credit bureau, which will be given to anyone who obtains a future report. For example, that statement may explain a past delinquent bill or other financial circumstance was caused by illness, unemployment or divorce. It gives potential creditors a better picture of any past problems you had paying back loans. This may be helpful in re-establishing new credit or improving your credit rating. To see what lenders see, consider obtaining your own credit report to see what may need clarification.

Credit rights dictate the way consumers interact with credit bureaus

1. The Credit Reporting Act applies only to consumer transactions.

2. Reports may be given to a person seeking information only for the purpose of: extending credit or collecting a debt; a tenancy inquiry employment or insurance verification under authority granted by a government statute otherwise, as a direct business requirement.

3. Before a person may obtain a report, she or he must: have the consumer's consent in writing, or notify the consumer by mailing a notice postmarked at least three days before obtaining the report.

4. If a consumer is denied credit or has an increased cost as a result of information obtained in a credit report, the person must be notified promptly by the person denying credit.

5. The consumer has a right to place a 100 word statement (50 recommended) on the credit bureau file, to be given to anyone who obtains a future report.

6. A consumer has a right to see the file and has a right to receive a copy of any report.