Village Financial counselors help consumers understand credit reports

The Consumer Financial Protection Bureau (CFPB) recently announced that it would soon begin examining credit reporting agencies to confirm that they are producing accurate credit reports and that consumers have the ability to dispute errors on their reports.

The purpose of a credit report is to provide a track record of a person’s credit history. The report contains information such as where a person lives, how many lines of credit have been applied for or opened and how he or she manages credit.

Credit reporting bureaus sell the information to lenders, insurers, employers and other businesses that use it as a tool when evaluating a person’s application for credit, insurance or employment.

The reasons for obtaining a credit report include confirming accuracy before applying for credit, checking for identity theft or verifying that outdated information has rotated off.

If consumers question the accuracy of the information contained in the report, the Fair Credit Reporting Act provides them with the opportunity to dispute the entry. Consumers should dispute the information directly with the credit reporting bureau through which the report was obtained. The bureau must then investigate the concern and correct or delete inaccurate or unverifiable information, usually within 30 days.

Credit reports are meant to be accurate snapshots of a person’s credit history. If the report contains negative information that is true, it needs to remain a part of the report

Consumers can obtain their credit report free of charge once every 12 months from each of the three credit reporting bureaus by going to www.AnnualCreditReport.com.

For help understanding a credit report, contact The Village Family Service Center, an NFCC member, at 1-800-450-4019 or www.helpwith

money.org.

Tags: local news, news, financial, counselors, credit