Q: What is the Fair and Accurate Credit Transactions Act?
A: The new law empowers consumers with useful tools to help thwart identity theft, a fast-growing crime that struck seven million Americans in 2003. Beginning on March 1, Iowans will have the right to obtain for free their credit reports every year from each of the three nationwide consumer credit reporting services - Equifax, Experian and Trans Union. Consumers ought to take a pro-active approach to keep criminals from smearing their financial reputation and taking their good name for a ride. Don't wait until something goes wrong. Double-check the information on your credit report to make sure it is up-to-date and accurate, especially application requests for loans or credit cards.
Q: What is in a credit report?
A: The credit reporting bureaus compile financial information about individual consumers, including how you pay your bills, whether you've been sued, arrested or have filed for bankruptcy. The federal Fair Credit Reporting Act sets the standards to limit legal access to your credit report. Creditors, insurers, employers or landlords are among those who may purchase consumer credit reports as a means to evaluate applications for credit, insurance, employment or mortgages.
Q: How can Iowans obtain a copy of their free credit report?
A: The three credit companies set up a one-stop shop for consumers to access a free copy of their credit report. Fill out an on-line request form at http://www.annualcreditreport.com to access your report immediately. Consumers will receive a report within 15 days by calling toll-free 877/877-8228 or mailing a request to the Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. For more information about identity fraud or the new credit reporting law, check out the Federal Trade Commission at www.ftc.gov/credit.
Q: What other consumer-friendly protections are included in the new law?
A: Effective December 2006, all printed receipts must leave off all but the last five digits of a credit card number to help prevent identity fraud. Victims of identity theft need only report suspected fraud to one of the three national credit-reporting groups. One contact will trigger a comprehensive fraud alert on your record. And homeowners applying for a loan also now will receive the credit score used by mortgage lender to calculate the loan's interest rate. As a senior member of the Judiciary Committee in the U.S. Senate, I will continue to push for public policies that crack down on identity theft by improving the resolution process for consumer disputes, beefing up accountability standards for credit bureaus, opening up consumer access to credit information and empowering consumers with the tools to protect their good name and good credit.