Article Abstract:
Creditors are required to disclose certain information to rejected credit applicants under two acts: the Fair Credit Reporting Act and the Equal Credit Opportunity Act. Disclosure must be made whenever outside sources affect the credit decision. The credit applicant is entitled to know that a credit report was used and the name of the agency from which it was obtained; that information was obtained from another source; and that the applicant has the right to learn the type of information through a written request. Through the Equal Credit Opportunity Act, the reason for rejecting a credit applicant must be disclosed. A checklist includes items to remind creditors of actions to be taken and credit reporting requirements.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
Legislation for additional control of the credit-reporting industry and the supply of information to consumers has been proposed in several states. Legislators appear to have forgotten the states' mandate for education for its citizens, and place the costly responsibility on industry. The most prominent proposals concern free file disclosures under a number of conditions. Attention is also being given to notification of adverse action by either consumer reporting agencies or credit grantors and the availability of credit risk scores to consumers.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
Issues of concern to the credit industry are to be found in both Federal and state legislatures, and five of the most important are examined in this legislative update. These five issues are: revenue; collection practices; credit reporting; credit card reporting; and general consumer protection. Under the category of general consumer protection is the popular legislative effort aimed at unsolicited telephone calls, and the approaches to this problem range from prohibition to intensive regulation.
User Contributions:
Comment about this article or add new information about this topic: