Hardship Letter: The Fair Credit Reporting Act upholds the confidentiality, discretion, and truth of information as used in creating customer credit reports. It seeks to control the distribution, collection, and utilization of “consumer credit information.”
Under this law, the credit reporting agencies are required to uphold absolute, full, and accurate files and information. With this act, consumers are entitled to receive their credit reports and to take actions to validate the correctness of information contested by a customer.
The consumers are entitled to such actions under this law:
1. Credit bureaus are permitted to provide credit reports only to those with a lawful business cause Credit bureaus are not allowed to disclose any information or credit report to institutions that have no legal basis as to their request for particular credit report information. Only entities such as insurers, employers, creditors, and government agencies are allowed to receive an individual’s credit report as part of the evaluation process. Sample Hardship Letter.
2. The consumer’s right to know regarding denied credit
In cases like denied credit, consumers have the right to know about the details of such report. With this, consumers can identify which credit bureau issued such report. In this way, the consumer will be able to check if there has been any discrepancy. These are just some of the rights consumers can enjoy under the Fair Credit Reporting Act and the Fair Debt Collection Practices Act. With these laws, the rights of the consumer to a just and fair treatment are upheld.
www.ftc.gov/os/statutes/031224fcra.pdf
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