7 Essential Facts About Fair Credit Act 604 Form

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The Fair Credit Reporting Act (FCRA) is a vital piece of legislation that protects consumers' rights when it comes to credit reporting. One of the key components of the FCRA is the 604 form, also known as the Fair Credit Act 604 form. This form is used by lenders and creditors to request a consumer's credit report, and it's essential to understand its significance. In this article, we'll delve into the 7 essential facts about the Fair Credit Act 604 form that you need to know.

What is the Fair Credit Act 604 Form?

The Fair Credit Act 604 form is a document that lenders and creditors use to request a consumer's credit report from the three major credit reporting agencies: Equifax, Experian, and TransUnion. The form is designed to provide lenders with the necessary information to evaluate a consumer's creditworthiness.

Fact #1: Purpose of the Fair Credit Act 604 Form

The primary purpose of the Fair Credit Act 604 form is to provide lenders with a standardized way to request a consumer's credit report. The form ensures that lenders comply with the FCRA requirements, which protect consumers' rights and prevent abusive practices.

Fact #2: Requirements for Completing the Form

To complete the Fair Credit Act 604 form, lenders must provide specific information, including:

• The consumer's name and address
• The consumer's social security number or Individual Taxpayer Identification Number (ITIN)
• The purpose of the credit inquiry (e.g., mortgage, credit card, or employment)
• The lender's name and address

Lenders must also certify that they have a permissible purpose for requesting the credit report, as defined by the FCRA.

Fact #3: Permissible Purpose

The FCRA defines permissible purposes for requesting a consumer's credit report. These purposes include:

• Evaluating a consumer's creditworthiness for a loan or credit application
• Reviewing a consumer's credit report for employment purposes
• Considering a consumer for a rental property
• Evaluating a consumer's creditworthiness for a mortgage or insurance application

Fact #4: Consumer Rights

The Fair Credit Act 604 form also outlines consumer rights under the FCRA. These rights include:

• The right to access their credit report
• The right to dispute inaccurate information on their credit report
• The right to opt-out of prescreened credit offers
• The right to sue lenders or creditors for non-compliance with the FCRA

Fact #5: Disclosure Requirements

Lenders must disclose specific information to consumers when requesting their credit report using the Fair Credit Act 604 form. This information includes:

• The consumer's right to access their credit report
• The consumer's right to dispute inaccurate information on their credit report
• The lender's permissible purpose for requesting the credit report

Fact #6: Credit Score Disclosure

In addition to the credit report, lenders may also request a consumer's credit score using the Fair Credit Act 604 form. The credit score disclosure must include:

• The credit score
• The range of possible credit scores
• The factors that affected the credit score

Fact #7: Record Keeping Requirements

Lenders must maintain records of the Fair Credit Act 604 form and the consumer's credit report for a minimum of five years. This ensures that lenders can provide proof of compliance with the FCRA and respond to consumer inquiries or disputes.

In conclusion, understanding the Fair Credit Act 604 form is essential for both lenders and consumers. By knowing the facts about this form, consumers can protect their rights and ensure that lenders comply with the FCRA. Lenders, on the other hand, can use the form to request credit reports and credit scores, while maintaining compliance with the FCRA.

We encourage you to share your thoughts and experiences with the Fair Credit Act 604 form in the comments section below. If you have any questions or concerns, feel free to ask!