Legislators Ponder New Credit Protection Laws

Legislators in Washington, D.C. are considering respective credit-related consumer protections as outlined in The Carnival and Accurate Credit Transaction Act of 2003 (H.R. 2622). If approved, consumers could profit from the most wide-ranging changes to the regulations covering consumers and credit in decades.

One of the most of import changes would be the right to have a free annual transcript of your credit report, upon request, from the three major credit reporting agencies: Equifax, TransUnion and Experian. Currently only six U.S. states offer their occupants this word form of consumer protection. Federal Soldier law necessitates that a consumer may obtain a free transcript of their credit report only if they have got been denied a loan or credit based upon information contained in their credit reports.

Other highlights of The Carnival and Accurate Credit Transaction Act of 2003 include:

special presentments whenever excessive enquiries (credit checks by possible lenders and creditors) are lowering your credit scores significantly;

notification by creditors whenever they are sending derogative account information to any of the national credit reporting agencies;

blocking negative credit information caused by an identity stealer from reappearing on credit reports;

mandating creditors to set up guidelines to forestall them from issuing credit deemed likely to be fraudulent;

the revelation of credit scores used in connexion with loan application determinations and an account of the cardinal factors that were used to determine that score;

requiring the revelation of the name, address, and telephone number of businesses that supply information to credit bureaus.

At first glimpse this measure looks to offer valuable credit protections for consumers. However, there are others who experience this statute law either doesn’t make enough or even reduces consumer rights. The projected federal law could replace tougher laws already in topographic point in some states and that have consumer advocators concerned.

For an in depth analysis of H.R. 2622 by leading consumer advocates, visit http://www.privacyrights.org/ar/HR2622Analysis.htm

Lawmakers and consumer groupings hold that changes need to be made to break protect consumers and their credit rights. Whether or not The Carnival and Accurate Credit Transaction Act can turn to these concerns stays to be seen.