Fair Credit Reporting Act Gets Tweaked By Congress
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"Fair credit reporting act gets tweaked by congress"

Votes due this fall in both Houses
 

San Diego, CA-  A H.R 2622 is a bill working its way through Congress and is titled "Fair and Accurate Credit Transactions Act of 2003. It amends the current Fair Credit Reporting Act to "prevent identity theft,
improve resolutions of consumer disputes, improve accuracy of consumer records, make improvements in the use of, and consumer access to credit information, and for other purposes."

When approved by Congress, the House may vote in September and the Senate later in the fall, the new provisions will make it easier for consumers in all fifty states to deal with their credit files. Among
the provisions are a free copy, annually upon request, of credit reports from each of the three credit reporting agencies (CRAs), disclosure of credit scores, which are used by lenders when making lending decisions,
the latter is similar to a California law already on the books. Further, when requesting your free credit reports, the proposed law includes a provision whereby the CRA's must notify consumers of their right to get
their credit scores and also include an explanation of factors that may have a negative affect on your score.

Another provision calls for creditors to notify a consumer whenever negative information is going to be sent to a CRA for inclusion on your credit file. This provisions would drastically reduce the number of inaccurate reports going into files because the consumer will know in advance. Currently creditors submit negative information to the CRA's and never have to notify the consumer. Under this provision, consumers
would know in advance if a lender was making a false report on a late pay or other delinquency, for instance, and therefore may dispute it in advance of it hitting credit files.

Further, to help consumers who are actively shopping for a mortgage, automobile or other type of loan, avoid having an incredible number of inquiries on their credit reports as a result, would receive a special
notification from the CRA that these inquiries are lowering the consumer's credit score.

A new provision in H.R. 2622 would support the use of a helpful option known as "rapid rescoring" which would be used when applying for a mortgage. Example: A consumer makes application for a mortgage and
some negatives appear, which the consumer is unaware of, and as a result is offered a mortgage at a sub-prime rate of interest. Consumers currently have the right to ask the loan officer to reveal the data the
lender obtained and point out any mistakes, however errors could not quickly be corrected for the borrower to qualify for the market interest rate. With the new provision for so-called "rapid rescoring" consumers
may ask for a rescoring which could be done in about 72 hours thereby enabling a consumer to get the market interest rate. The lender must request the rescoring from dozens of qualified credit bureaus to rescore your files based on documentation you submitted about the mistakes. Individual consumers may not contract with CRA's to perform rescoring.

More information about agencies that engage in rapid rescoring may be
found at www.ncrainc.org

More information about H. R. 2622 may be found at:
http://financialservices.house.gov/media/pdf/108hr2622ai.pdf

For help correcting credit file mistakes and free information about the credit file correction process, please visit: www.financial-education-icfe.org. To receive the same information by mail, please send $1 and a self-addressed, 60 cent stamped envelope to: ICFE, Credit File Mistakes, PO Box 34070 San Diego, CA 92163-4070.

For more information contact: Paul S. Richard - ICFE Executive
Director at 619-239-1401
 

About the ICFE:

The Institute of Consumer Financial Education (ICFE) was founded in 1982 by the late Loren Dunton (creator of the Certified Financial Planner (CFP) designation).  The ICFE is dedicated to helping consumers of all ages to improve their spending, increase savings and use credit more wisely. 
The ICFE is an award winning, nonprofit, consumer education organization that has helped millions of people through its education programs and Resources. It publishes the Do-It-Yourself Credit File correction Guide, which is updated annually. The ICFE has distributed over one million Credit/Debit Card Warning Labels and Credit/Debit Card Sleeves world wide.

The ICFE became an official partner with the Department of Defense/Financial Readiness Campaign in June of 2004.The ICFE was an active partner in the California Student Debt Resource Awareness Project (CASDRAP) which resulted in a new web site: (studentdebthelp.org).  CASDRAP disbanded in 2010, shortly after the web site project was completed.  In 2011 the ICFE assumed the single sponsorship of the (studentdebthelp.org) web site and is now responsible for its content and operation.

The ICFE is also an on-line help for consumers who spend too much.  ICFE's spending help was featured in PARADE Magazine in the Intelligence Report section. The money helps and tips are from the ICFE's Money Instruction Book, our course in personal finance.

Visit the ICFE's other web sites at: www.financial-education-icfe.org and studentdebthelp.org.  Both sites helps consumers and students with mending spending, learning about the proper use of credit, budget and expense guidelines, how to set up and implement a spending-plan and also how to access financial education courses and how to teach children about money. Other ICFE services include: Ask Mr. G,  a free eNews, and an online resource center for students, parents and educators, plus financial education learning tools and a book store.

About the ICFE:

The Institute of Consumer Financial Education (ICFE), founded in 1982 by the late Loren Dunton (creator of the 'certified financial planner' (CFP) designation) and it is dedicated to helping consumers of all ages to improve their spending, increase savings and use credit more wisely. The ICFE trains and certifies Personal Finance Instructors for its own curriculum. It also trains and certifies Credit Report Reviewers and Identity Theft Prevention Specialists.

The ICFE is an award winning, nonprofit, consumer education organization that has helped millions of people through its education programs and Resources. It publishes the Do-It-Yourself Credit File correction Guide, now in its 16th printing and has distributed over one million 'Credit/Debit Card Warning Labels' and 'Credit/Debit Card Sleeves' world wide.

The ICFE became an official partner with the Department of Defense/Financial Readiness Campaign in June of 2004.

The ICFE is also a partner in the national Jump$tart Coalition for Financial Literacy and the California Jump$tart chapter. The ICFE staff is also active with San Diego Saves, an offshoot of America Saves, and the California Student Debt Resource Awareness Project (CASDRAP) (studentdebthelp.org).

The ICFE's on-line help for consumers who spend too much was featured in PARADE Magazine in the Intelligence Report section. The money helps and tips are from 'The Money Instruction Book,' a course in personal finance, positioned to become among the premier programs in the new bankruptcy and debtor education initiatives.

The ICFE Web site at: www.financial-education-icfe.org helps consumers with mending spending, learning about the proper use of credit, budget and expense guidelines, how to set up and implement a spending-plan and also how to access financial education courses and videos and how to teach children about money. Other ICFE services include a free eNews, and an online resource center of financial education learning tools, including videos, books, software and personal finance courses.

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