Just as a resume discloses work experience to a prospective employer,
a credit report provides a picture of an individuals credit history to prospective creditors, employers and insurers.
A credit report shows how credit is currently being managed and discloses to what extent promises are being kept to pay debt obligations.
Credit history influences the ability to rent or buy housing, get a job, buy insurance and qualify for loans. Ideally, a credit report would be "an accurate, up-to-date record of credit payment history" but all too
often credit reports are inaccurate, not up-to-date and contain misrepresentations about credit history. Moreover, credit reports often do not contain positive information about payments made on time, loans repaid and other successes debtors achieve in meeting their obligations. What the law says
· The Consumer Credit Act 1974 gives
you the right to have incorrect information corrected or removed from your file or have a note put on the file, which explains why you think the information is wrong.
· Under this Act the credit reference agency has to tell you within 28 days of receiving your letter if they have taken action to correct your file or why they have not done so.
· Under the Data Protection Act 1998 you should be
told, unless it is already obvious, if the files of a credit reference agency are to be searched when you apply for credit.
· The Theft Act 1968 makes it an offence to supply incorrect information on an application for credit
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