Alderman: Consumer reporting agencies follow your moves
By now, you’ve probably heard about the Big Three credit bureaus (Equifax, Experian and TransUnion), that monitor your financial history and issue credit reports and credit scores to potential lenders. But did you know that there are dozens of other specialty consumer reporting agencies that track your history for activities that may not appear on your regular credit reports – things like bounced checks, late utility payments, insurance claims and prescription orders?
Most people never hear about these companies until they’re suddenly turned down for an apartment, checking account, insurance policy or even a
job or promotion. But you need to know that potential landlords, banks, insurance companies and employers are very likely ordering specialty reports to help them assess the risk of doing business with you.
That’s fine if you’ve got a squeaky-clean track record. But what if their files contain mistakes – or worse, what if someone has hijacked your identity and is poisoning your record with their own bad behavior?
Fortunately, you do have recourse. Under federal law, you can request a copy of your report once a year from each agency, generally for free. You’re also entitled to a free copy whenever an “adverse action” is taken against you because of something in the report. (For example, if you’re turned down for a checking account.)
Unfortunately, there’s no central clearinghouse for these specialty agencies, so you need to contact each individually. However, the Consumer Financial Protection Bureau has taken some of the legwork out by compiling a list of the most commonly used agencies, along with instructions and contact information for ordering your reports. (Search “Specialty Consumer Agencies” at www.cfpb.gov.) Another great resource is the Privacy Rights Clearinghouse’s fact sheet on specialty reports at www.privacyrights.org.
Specialty consumer reporting agencies collect information about you from various sources and share it with creditors and other businesses, including:
- Public records of criminal and civil cases
- Credit history
- Bankruptcy filings
- Companies with which you have an existing or prior relationship
- Medical information
- Driving records
- Payday lending
Jason Alderman directs Visa’s financial education programs.
To follow Jason Alderman on Twitter: www.twitter.com/PracticalMoney.