FACT ACT: The United States Congress has given you a tool to help ward off identity theft—the ability to monitor your credit reports for free.
The Fair and Accurate Credit Transactions Act of 2003 (FACTA) grants you one free credit report per year from each of the three nationwide consumer credit reporting companies—Equifax, TransUnion and Experian. You can request one, two, or all three reports at the same time, or stagger your requests over a 12-month period. One advantage of ordering all your reports at one time is you can compare the information each of the bureaus has collected on you. However, if you opt to order a report every four months, you'll be able to see any unauthorized activity that's occurred in the previous months.
How to order your reports. You can order free reports on-line at www.annualcreditreport.com. You can also request your reports by phone by calling toll free (877) 322-8228, or complete the Annual Credit Report Request Form (download it at https://www.annualcreditreport.com/cra/requestformfinal.pdf) and mail it to: Annual Credit Report Service, P.O. Box 105281, Atlanta, GA 30348-5281. Phone and mail requests will be processed within 15 days of receipt. Allow 2-3 weeks for delivery.
Why it's important.Your credit history is your It's resume. It's what credit grantor's, landlords, employers and insurance companies use to determine your credit worthiness. The better credit you have, the better interest rates you'll secure on loans. So, it's in your best interest to make sure the information contained in your report provides an accurate picture of your financial history.
Protect your identity.Identity theft claimed some 10 million victims in 2002 alone, according to the Commission's Trade Commission’s (FTC) “Identity Theft Survey Report” conducted in September of 2003. According to the report, the total cost of identity theft to the consumer victims was $5 billion. Approximately 52 percent of the identity theft victims (approximately 5 million people) discovered that they were victims of identity theft by monitoring their accounts.
By reviewing your credit report periodically you can stay on top of any unauthorized credit accounts that have been set up in your name. You’ll also be able to see inquiries that you didn't initiate and any suspicious debts on your legitimate accounts.
Spot mistakes before they wreak havoc. A June 2004 study by the National Association of State Public Research Interest Groups (U.S. PIRG) revealed some alarming facts surrounding the accuracy—rather, the inaccuracy—of information contained in credit reports.
The consumer advocacy group's study, which looked at credit reports belonging to 200 adults in 30 states, found that almost 80 percent of the reports contained mistakes, including misspelled names, wrong social security numbers and inaccurate birth dates. Other errors included closed accounts listed as active, loans listed multiple times and loans not listed at all. Most disturbingly, the same study found that one in four credit reports contained errors grave enough to impact the consumer's ability to acquire affordable credit, and can even result in the denial of loans, housing and employment.
It's your right; it's my right. While FACTA stops short of curbing the exchange of information between credit agencies and parties interested in your credit history, it empowers you, the consumer, to make certain the information is both accurate and up to date.
