New law entitles individuals to free annual credit report

As of March 1, Iowans can obtain a free copy of their credit reports compiled by each of the three national credit reporting bureaus. A new law entitles individuals to one free copy of the report every twelve months. This is a great opportunity - and it can help stop identity theft.

The credit reporting companies collect information about individuals - important information such as if bills are paid on time, account balances owing, and whether an individual has filed for bankruptcy or been sued or arrested. And the companies sell information to creditors, insurers, employers, landlords, and other businesses who want to evaluate credit.

Three national agencies compile credit reports - Equifax, Experian and Trans Union - and now it’s free and very easy to get reports. (The FTC required the agencies to set up a joint clearinghouse for consumer requests.) Just log on to www.AnnualCreditReport.com, call toll-free to 1-877-322-8228, or write to P.O. Box 105281, Atlanta, GA 30348-5281.

Why obtain and examine a credit report?

• Review credit reports to be sure no one has stolen identity. “Identity theft” usually means someone uses personal information to open new accounts under another individual’s name without them knowing it. So, examine the report, and look for unfamiliar credit card accounts or other suspicious activity, such as incorrect - addresses or indications of delinquent payments.

• Check credit reports to see if there are any errors - and then get them corrected. Millions of credit reports are sold every day, and research shows about one in four credit reports contains an error. Errors might cause individuals to pay higher interest rates, or be denied a home loan, credit card, or even a new job. Federal law and FTC rules give individuals very specific rights to dispute and correct credit reports.

For more even information on how, why, where and when to get a free credit report, how to dispute errors, and what to do in a case of identity theft, access the following websites: www.AnnualCreditReport.com, www.FTC.gpv (Federal Trade Commission website), or www.IowaAttorneyGeneral.org.

Other complaints or questions may be answered at 515-281-5926, toll-free at 1-888-777-4590, or by writing to the Attorney General’s Consumer Protection Division, Des Moines, IA 50319.