Consumers in Western States Can Get Free Credit Reports Starting December 1

SAN FRANCISCO – Beginning December 1, consumers living in the western U.S. will have the right to order a free copy of their credit report thanks to a new federal law, known as the Fair and Accurate Credit Transactions Act (FACTA), adopted by Congress in 2003. Consumers elsewhere in the nation will get the same right over the next year as the law is phased in across the country.

To help consumers take advantage of this new law, Consumers Union, the non-profit publisher of Consumer Reports has published “Your Credit Matters,” an online guide with detailed advice on how to order a credit report, review it for accuracy, and correct mistakes if you find them. The guide is available at: http://www.consumersunion.org/issues/creditmatters.html.

“Having good credit can mean the difference between paying a high or a low interest rate for a loan or whether consumers are offered insurance, jobs, or housing,” said Norma Garcia, Senior Attorney for Consumers Union’s West Coast Office. “Consumers should order their free credit report so they can make sure it’s accurate and to protect themselves against identity theft.”

Starting December 1, consumers in Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming will be entitled to one free copy of their credit report annually from each of the nationwide credit bureaus. The major credit bureaus are Equifax, Experian, and Trans Union. Consumers in mid-western states will get this new right beginning March 1, 2005; consumers in southern states will be eligible beginning June 1, 2005; and consumers in eastern states, Puerto Rico and U.S. territories will be able to order reports starting September 1, 2005.

Consumers will be able to request their free credit reports through a web site, toll-free telephone line, and by mail and will have the option of making a single request to get copies of their report from all three major credit bureaus. The credit bureaus are expected to announce the web site address and telephone number for ordering credit reports on December 1.

“For years we’ve advised consumers to obtain a copy of their credit report and review it for accuracy as part of an annual financial check-up,” said Garcia. “Now that credit reports are free, consumers have easy access to this important document and can take steps to make sure it offers a fair picture of their credit history.”

In “Your Credit Matters,” Consumers Union offers tips to consumers on how to review their credit reports once they receive them since reports often contain inaccuracies. For example, consumers should look to make sure that their name address, social security number and all other personal information is correct. They should make sure that there are no accounts, debts, bankruptcies or other judgments on their report that don’t belong to them. And they should make sure that payment histories and balances are correct and that any errors they have reported in the past have been corrected.

In addition to highlighting other credit report information to review, the guide offers helpful tips and information about correcting errors, including new rights available to consumers who find mistakes and contact information for each credit bureau to report disputes. The guide also offers helpful advice about what consumers should do if they discover they’ve become a victim of identity theft, highlighting some important new rights that will go into effect across the country on December 1. And it provides useful information on obtaining and understanding credit scores, and how consumers can monitor their own credit.

“Knowledge is power,” said Garcia. “Obtaining and reviewing your credit report is an important step in protecting yourself from errors and identity theft and maintaining a positive credit history.”

Consumers Union intends to monitor how well the new law is being implemented by collecting feedback from consumers who order their free credit reports. Consumers can sign up to provide feedback on their experiences at: http://www.consumersunion.org/issues/creditmatters.html.

Consumers Union, publisher of Consumer Reports, is an independent, nonprofit testing and information organization serving only the consumer. We are a comprehensive source of unbiased advice about products and services, personal finance, health nutrition, and other consumer concerns. Since 1936, our mission has been to test products, inform the public, and protect consumers.