You should know your rights and what the consequences could be if someone checks your credit report without your consent. A company or employer can sue you if they do an unauthorized credit inquiry on you. You also have the right to access your credit report. Know how to obtain a credit report.
You have a right to be protected from unauthorized credit checks
You can use security freezes to stop unauthorised credit checks. This prevents credit applications from becoming approved unless the freeze is granted. It can also hinder the approval process. A security freeze is good for protecting your identity. It can also be useful in preventing identity theft. It is important to use it properly. However, this process won't stop you from doing unauthorized credit checks.
You have the right of action against a company or employer
NYC has a human rights law that prohibits employers from checking credit reports. While the law does not bar employers from doing background checks or doing other research, it does ban them from using your credit information for employment decisions. You have the right to sue your employer if they violate your rights.
You have the right of seeing your credit reports
If you have been denied credit, you can request a free copy of your credit report. This right applies when an entity has taken adverse action against you based on your credit report, such as denying credit, terminating credit, or changing an insurance offer. You must be provided with the name and phone number of the credit reporting agency. Because inaccurate information could result in unfair or discriminatory treatment, those on government assistance and unemployed are eligible for free credit reports.
The law allows you to sue an employer for damages if they use your credit report to make hiring decisions without your consent. You can also seek punitive damages and attorney's fees if the information is inaccurate or misleading. You should know that if you decide to sue, you must prove that you were harmed by unauthorized access.
You can request a copy your credit report.
Whether you have excellent credit or bad credit, you have the right to request a copy of your credit history from any of the three major credit bureaus. When you request a copy, the credit bureaus must provide you with all of the information in their files at the time of your request. You also have the right of knowing the identity of anyone who received your report within the last year or so. You can also request the name of the credit bureau from which you were denied a loan or credit application.
Your credit score can impact your purchasing power and chances of getting a job. Credit bureaus sell information to businesses in order to make loan or insurance decisions. Some employers also use it to make hiring decisions. You have the right to request a credit report copy. But you shouldn't unless there is a legitimate reason. False pretenses could result in criminal and civil penalties.