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Most of the population in America has average credit scores. They neither belong to the exemplary category or the defaulters. Generally the employer conducts a check through informed consent from the employee to find out their previous credit records through a third party. This background check is authorized and done according to the Fair Credit Reporting Act. In case they decide not to hire you based on some information contained in the document, a full disclosure and of the report must be made to the applicant and also a copy stating rights of the applicant in the matter.

Consumers have the right to be updated about their credit status and they can obtain a credit report annually from the various credit bureaus. It can be obtained via telephone, post or online through the website authorized by the government-annualcredit.com. In case you wish to challenge some part of the report you may do so by questioning it and dispute the claim. In case some claim under dispute is to be reinserted in the report, the customer has to be notified beforehand. The Fair Credit Rating Act also gathers a lot of other information pertaining to financial records such as payment histories of medical bills, tenant history or residential history, insurance claims, employment history, check history all of which contribute to the credit report that is finally compiled.

The various creditors that a consumer may have contracts with such as a vehicle loan, a mortgage or any other form of credit are required to be provide accurate and up to date information to reporting agencies and the credit bureau. The task of investigating any claims of dispute by a client is also theirs and a response must be given within 30 days as to why the report is accurate or inaccurate following a thorough investigation of the claims made.

They must inform the consumer in advance that missed payments or late payments will be recorded and reported to credit bureaus, they should also inform in writing when such an insinuation has been made against the customer to the bureaus. The verification may be done by the consumer, in case there is any dispute to the claims made and to this end they must be informed at all times about any changes in the credit report. Consumers have now got greater access to their credit records thanks to the Fair And Accurate Credit Transactions Act.

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