So, what’s Your Credit Score?

AUTHOR: Crystal Fontaine

It seems like every time I turn around the two words “credit report” jump out at me. I go to buy a car and the salesman must run a credit report. I go to buy a house and they ask for my credit. Even at home a commercial for FreeCreditReport.com is telling me to check out my credit report on their website. Hey, it’s free, right? The availability of your credit report to numerous hands may make your stomach churn. But wait, there is a solution.

According to the bill SB712, a “security freeze” may be placed on a consumer’s credit report if the consumer so wishes to choose. This security freeze prevents any credit reporting agency from reporting someone’s credit to a third party without the person’s explicit consent. The freeze must be in place within five days and the customer is to be notified within ten days of the restriction. In order to lift the freeze, a credit agency must receive instructions from the consumer. The first security request is, of course, free; however, a consumer will be subjected to a fee of $10 for every freeze thereafter.

A security freeze does not mean that a credit reporting agency does not ever give out a customer’s credit report. There are many circumstances in which a credit agency may give out a report. For instance, a credit report may be made if the State of Missouri requests it in an investigation of fraud. A credit report may also be made for certain insurance purposes, pursuant of a court order, and for a variety of other reasons. This bill also mandates that a credit reporting agency must provide summary rights to anyone who believes that they have been a victim of identity theft. If the agency violates the act, they are subjected to any actual damages that a consumer may experience, the court cost, as well as other reasonable assistance that the court may deem necessary.

The bill SB712 may also limit the type of information required to submit in receiving any rebates on purchases. Nevertheless, a business may ask for additional information if they believe that a rebate claim is fraudulent. The consumer at the time of the claim will be provided a mail-in-rebate form and they will be given 30 days to submit the form. After receiving the mail-in-rebate, a business shall send payment to the consumer within 30 days.

Amid the crowd of businesses and sales representatives thirsting for your credit, it’s nice to know that not everyone can see it. A credit report is like the report card you got in grade school: not everyone needs to know how well you’ve done (or even how well you haven’t).