If you’ve ever been blindsided by negative information on your credit report, you may have wondered why you weren’t notified of the problem. Indeed, although the Fair Credit Reporting Act (FCRA) outlines requirements for credit report notifications, some creditors – and especially debt collection agencies – do not abide by the law. Here are some examples of notification requirements under the FCRA:
Before sending negative information: Creditors must notify you if they are going to place a negative item on your credit report. However, they don’t necessarily have to send you a separate notice. According to the law, the notification can be included with a monthly bill, and say something to the effect that the creditor may report information about your account to consumer reporting agencies, and that late payments, missed payments, or defaults can appear on your credit report.
After sending negative information: If a debt collection agency or creditor reports something negative about your account, they must notify you of that action within 30 days.
Fraud or identity theft: If you have been the victim of fraud or identity theft and have notified a third-party debt collection agency that the debt is fraudulent, the debt collector is required to provide you with information about your rights in debt collection.
Items removed following a dispute: If you’ve disputed an item on your credit report and the negative information was removed, it cannot reappear on your credit report unless you’re notified in writing within five days.
Adverse actions: If you are denied employment, insurance, or credit because of your credit report, the company that denied you must tell you that your credit report was the reason for denial, as well as the name and contact information of the credit reporting agency that furnished the report.
