CONSUMER ALERT. Free Annual Credit Reports - What Consumers Should Know

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1 CONSUMER ALERT MIKE COX ATTORNEY GENERAL The Attorney General provides Consumer Alerts to inform the public of unfair, misleading, or deceptive business practices, and to provide information and guidance on other issues of concern. Free Annual Credit Reports - What Consumers Should Know Beginning March 1, 2005, Michigan consumers can order a free credit report from each of the three major credit reporting agencies every year. Consumers can order their free annual credit reports by mail, by telephone, or online. Reviewing your credit reports can help you detect fraudulent activity early, allowing you to take effective steps to limit the headaches you may encounter if you are a victim of identity theft. Knowing what's in your report before you apply for a loan or a job may also be helpful. This Alert tells consumers: why they should review their credit reports; how to order their free annual credit reports; why they should be cautious if ordering their free annual credit reports online; what precautions they can take if ordering by phone or mail; what they should look for when reviewing credit reports; and where to turn for more information. This Consumer Alert may contain links to web sites of non-governmental organizations. The Attorney General's Office lists such sites for the convenience of consumers and does not necessarily endorse specific positions of these organizations. 1

2 Contents: Introduction Before You Order Your Free Annual Credit Reports: Information For Ordering Your Free Annual Credit Reports! Warnings For Consumers Ordering Credit Reports Online! Suggestions For Consumers Ordering Free Annual Credit Reports By Phone Or Mail What's In Your Credit Report? What Should You Look For On Your Credit Report? What To Do About Inaccurate Information Your Right To Free Annual Credit Reports From Other, "Specialty" CRAs Other Information About Credit Reporting Agencies And Credit Reports Additional Information Introduction You have a right to order your free annual credit report from each of the three major consumer credit reporting agencies (CRAs): Equifax, Experian, and TransUnion. However, it is not necessary for you to order all three at the same time. If you are a victim of identity theft, you are entitled to place a fraud alert on your file and to receive copies of your credit report from each of the three CRAs free of charge, regardless whether you have previously ordered your free annual reports. For more information on ID theft, including advice for victims and tips on prevention, review the Attorney General's Consumer Alert on ID Theft at Before You Order Your Free Annual Credit Reports: The three CRAs have established a single service for consumers to use when ordering free credit reports. The contact information for this service is set forth below. DO NOT ATTEMPT TO ORDER FREE CREDIT REPORTS DIRECTLY FROM THE CREDIT REPORTING AGENCIES. You will be asked to provide sensitive information in order to receive your report. This is necessary to prevent ID thieves from obtaining copies of other people's credit reports. You may request at the time of ordering that no more than the last four digits of your Social Security Number appear on copies of your credit report. Consider marking your calendar to request a report from a different CRA every 4 th month. The Attorney General's Office recommends that consumers ordering reports as a preventative measure against ID theft stagger their requests so that they receive a free report from one of the three CRAs every four months. 2

3 Information For Ordering Your Free Annual Credit Reports By Telephone Call (toll free) By Mail Complete the Annual Credit Report Request Form and mail it to Annual Credit Report Request Service P.O. Box , Atlanta, GA The Annual Credit Report Request Form is attached to this alert and available at the Federal Trade Commission's (FTC's) web site: Online - (see warnings below)! Warnings For Consumers Ordering Credit Reports Online! Beware of s, banner ads, pop-up and pop-under Internet ads, and telemarketing calls that promise to obtain your "free annual credit report" on your behalf. In particular, messages or internet ads claiming to be from ARE LIKELY TO BE FRAUDS SEEKING TO TRICK CONSUMERS INTO SHARING THEIR PERSONAL INFORMATION AND, MOST LIKELY, BECOMING VICTIMS OF ID THEFT. Forward scam s to the FTC at [email protected]. Consumers thinking about ordering their free annual credit report online should proceed WITH CAUTION and be aware of possible risks. Do NOT order credit reports using a computer that is accessible to the public unless you are CERTAIN that adequate safeguards exist to prevent: "Shoulder surfing" people watching or even photographing the information you enter on a computer in a public place; Storage of your sensitive information on the computer, even if only temporarily. Your right to free credit reports does NOT require you to purchase or subscribe to any services. While you may decide to do so, you are not required to spend any money to exercise your right to a free credit report. Carefully type in the address of the web site, click on the link above, or copy and paste the address exactly as set forth in this Consumer Alert. Even one mistyped letter could take you to a fraudulent we b site that looks and feels like a place to order credit reports but in fact has been set up by ID thieves to harvest your information. 3

4 Other sites with similar names exist and may try to sell you credit monitoring services. At least one of these is operated by Experian and offers a "free" credit report - IF you sign up for a fee-based service. That page does not advise consumers of their right to a free credit report without subscribing to a service or provide a link to The CRAs DO NOT PROVIDE ANY GUARANTEES IN CONNECTION WITH YOUR USE OF THEIR WEBSITE. As of the date of this Consumer Alert, if you happen to visit the web page: you may find the following "small print" disclaimer: "The services offered on this web site are provided 'as is', with no warranties of any kind. If you are not comfortable using this website, you have the option to request your free annual credit reports through the telephone and mail request methods." Suggestions For Consumers Ordering Free Annual Credit Reports By Phone Or Mail There are a few things consumers may wish to consider if ordering by phone or mail: Be sure that the address you provide for receiving your credit reports has a secure mailbox. You can purchase locking mailboxes at hardware stores or open a P.O. Box at your local branch of the U.S. Postal Service. Visit the following page for more information: If ordering by phone, you may expect to encounter busy signals or a delay the first few days after March 1, Consider waiting until a few days have passed if you wish to minimize your waiting time. Request that the credit report contain no more than the final four digits of your Social Security Number. What's In Your Credit Report? Your credit report contains a collection of sensitive personal and financial information about you gathered from a variety of sources. You may view sample credit reports at these web pages: Experian: Equifax: 4

5 You can expect your credit report to contain: Personal information, including your current and other recent addresses, telephone numbers, Social Security Number, and birth information. A detailed credit history, including information on loans, credit cards, and timeliness of payments. "Public" records, such as bankruptcies, judgments, liens, etc. A list of all persons or organizations who have requested a copy of your credit report in the last six months. This list may be long and could include: Requests by creditors; Requests by you, the consumer; Requests for promotional purposes. (These include prescreened credit offers, which you can elect not to receive by calling 888-5OPTOUT, or ) Your report may also contain a statement of dispute you, or one of your creditors, may have submitted regarding a disputed item on your credit report. (Information on disputing errors on your report is set forth below.) What Should You Look For On Your Credit Report? When you receive your reports, check each section carefully and determine whether you believe the information is correct. Your report could alert you to fraudulent activity being carried on in your name by an ID thief or other inaccurate information that could affect your ability to obtain a loan. In particular, be sure to review: Your personal information: are there addresses or variations on your name that are wrong? Statements of credit accounts: are there credit card accounts or other debts that you are not familiar with? Potentially negative entries: are there unpaid debts listed on accounts you never opened? Public record information: is this information accurate? 5

6 What To Do About Inaccurate Information Clearly identify the inaccurate information on your credit report and dispute it, IN WRITING, with both the CRA that issued the report with inaccurate information and any creditors with which the information is associated. For more information, review the FTC's summary on disputing credit errors: If accurate information is not removed or reappears, you may wish to consult with a private attorney regarding possible legal actions. Here is contact information for the 3 credit reporting agencies and links to their web pages informing consumers how to dispute inaccurate information: Equifax To report fraud, call: and write: P.O. Box , Atlanta, GA For information on disputing errors, you may visit: Experian - To report fraud, call: EXPERIAN ( ) and write: P.O. Box 9532, Allen TX For information on disputing errors, you may visit: (online dispute form) TransUnion - To report fraud, call: and write: Fraud Victim Assistance Division P.O. Box 6790, Fullerton, CA For information on disputing errors, you may visit: ditreport.xml If you believe you are a victim of ID theft, ask for a "fraud alert" to be placed on your file and request that no new credit be granted without your express, personal approval. Ask how long your account will be flagged. Record the expiration date of the fraud alert, and call back as this date approaches if you wish the alert to remain on your file. Review the Attorney General's Consumer Alert on ID theft for further information: 6

7 Your Right To Free Annual Credit Reports From Other, "Specialty" CRAs You also have a right to order free annual credit reports from other "nationwide specialty consumer reporting agencies." These are companies that maintain specific types of files on consumers, such as employment history, tenant history, medical records, and insurance claims. There are many specialty CRAs, and each must maintain a toll-free telephone number through which consumers may request a free copy of their credit report once every 12 months. Neither the FTC nor the trade association of credit bureaus (CDIA) has chosen to publicize contact information for the specialty CRAs, and the Attorney General's Office does not currently have access to a list of these toll-free numbers. However, the following web page maintains a partial list of specialty CRAs and their contact information: The information below was taken from this web page in February While the Attorney General's Office cannot vouch for the continuing accuracy of information from this source, consumers may wish to visit this website periodically for updated information. Insurance History: CLUE Auto History: CLUE Homeowners' History: Employment History: Choicepoint Employment Reports: Provides reports only if it provided your report to an employer. ISO's A-Plus Auto and Property Databases: Residential Tenant History: Accufax: American Tenant Screen: Choicepoint Tenant History Reports: Provides reports if it provided your report to a landlord. UD Registry: Toll free number not yet available at the time of publication. National Tenant Network: Tenant Data Services: Tenant Screening Services:

8 Check Writing History: CheckRite: (800) Chexsystems: (800) CheckCenter/CrossCheck: (800) Certegy/Equifax: (800) International Check Services: (800) SCAN: (800) TeleCheck: (800) Medical Records or Payments: Medical Information Bureau: Toll free number not yet available at the time of publication. Other Information About Credit Reporting Agencies And Credit Reports You have a separate right, whether you order free annual reports or not, to receive credit reports if you are a victim of ID theft (see below) or you experience adverse action from a company that has ordered your credit report, such as a denial of credit or employment. To learn more about circumstances that entitle you to receive a free credit report and for other information, review the FTC's summary of your rights under the Fair Credit Reporting Act: You have a right to order - for a charge - a copy of your credit score. Your credit score is a number generated on the basis of your credit history which may or may not be accurate. Your credit score is used by lenders to evaluate your suitability as a borrower. Errors in your credit report can affect your credit score and, in turn, your ability to get a loan or to obtain a favorable interest rate. You are not required to order your credit score. You have a right to have your name removed from lists the credit reporting agencies sell for "prescreened credit offers" (such as unsolicited credit card offers) by calling 888-5OPTOUT ( ). 8

9 Additional Information Consumers may contact the Attorney General's Consumer Protection Division at: Consumer Protection Division P.O. Box Lansing, MI Fax: Other Consumer Alerts from the Attorney General's Office are available at: Additional information is available at the FTC's web site: ID Theft Home Page: En Español: The following websites provide further information on ID theft, credit reports, and other issues involving the security and privacy of consumers' personal information. Identity Theft Resource Center Privacy Rights Clearinghouse Michigan State University, Dep't of Criminal Justice US Pirg, ID Theft and Consumer Credit 9

10 Annual Credit Report Request Form You have the right to get a free copy of your credit file disclosure, commonly called a credit report, once every 12 months, from each of the nationwide consumer credit reporting companies - Equifax, Experian and TransUnion. For instant access to your free credit report, visit For more information on obtaining your free credit report, visit or call Use this form if you prefer to write to request your credit report from any, or all, of the nationwide consumer credit reporting companies. The following information is required to process your request. Omission of any information may delay your request. Once complete, fold (do not staple or tape), place into a #10 envelope, affix required postage and mail to: Annual Credit Report Request Service P.O. Box Atlanta, GA Please use a Black or Blue Pen and write your responses in PRINTED CAPITAL LETTERS without touching the sides of the boxes like the examples listed below: Social Security Number: - - Date of Birth: / / Month Day Year Fold Here Fold Here First Name M.I. Last Name Current Mailing Address: JR, SR, III, etc. House Number Street Name Apartment Number / Private Mailbox For Puerto Rico Only: Print Urbanization Name City State ZipCode Previous Mailing Address (complete only if at current mailing address for less than two years): House Number Fold Here Street Name Fold Here Apartment Number / Private Mailbox For Puerto Rico Only: Print Urbanization Name City State ZipCode Shade Circle Like This > Not Like This > I want a credit report from (shade each that you would like to receive): Equifax Experian TransUnion Shade here if, for security reasons, you want your credit report to include no more than the last four digits of your Social Security Number. If additional information is needed to process your request, the consumer credit reporting company will contact you by mail. Your request will be processed within 15 days of receipt and then mailed to you. Copyright 2004, Central Source LLC 31238