Have you ever asked yourself the implications of the credit bureau listing you as deceased? For starters, your credit score will become zero, your employment can be jeopardized, and your bank account could be frozen. For this reason, you should contact an FCRA attorney immediately.
A lawyer can help obtain all the information you need to set the record straight. They can also review documents and ensure data accuracy. In short, a legal expert can offer guidance throughout the process.
What Is the FCRA?
The FCRA is a federal law protecting the consumer’s right to fair credit reporting and preventing identity theft.
The Federal Trade Commission (FTC) and the United States Congress settled on the Fair Credit Reporting Act (FCRA) in 1970 to regulate businesses that utilize consumer reports to make employment, insurance, mortgage, and other credit decisions.
The FCRA’s main objective is to “assure that consumers’ personal information is, to the extent possible, correct, timely and complete.”
The FCRA contains several regulations that determine how creditors and other businesses utilize consumers’ sensitive data. The regulations attempt to provide transparency in using this sensitive information so individuals are not misled in their decision-making.
The FCRA also prevents a consumer who has died from having their data reported to a credit reporting agency (CRA). Personal data includes sensitive information such as name, social security number, address, employment history, and financial status.
Implications of Being Listed as Deceased on Your Credit Report
Since deceased individuals cannot make payments or purchase goods and services, the FCRA makes it illegal to have credit card debt reported. This protects financial institutions from risking losses while still providing a method for creditors to collect outstanding debts.
Let’s take a closer look at some of the implications of being listed as deceased on your credit report:
Your Credit Score Will Be Zero
When a person’s credit score is zero, they are legally prohibited from obtaining a loan, a mortgage, or other consumer debts such as personal loans or car loans.
Your Employment May Be Jeopardized
If your employer wants a background check to get an employee’s employment history, this will be difficult to obtain if you are deceased on your credit file. Since deceased individuals cannot be hired, your employers may become suspicious about why you are not showing up in the background check.
You May Have Difficulty Buying Property or Automobiles
Mortgage companies require a credit history to qualify a borrower for a loan. If your status is deceased, lenders will likely turn you down for any loan or mortgage, even with a co-signer.
Your Bank Account Could Be Frozen or Closed
If your bank account is frozen or closed you will have issues accessing your deposit.
How Can an FCRA Attorney Assist?
If the credit bureau has listed you as deceased, Fair Credit Reporting Act lawyers can assist you in the following ways:
Obtain Information on Your Deceased Status
Upon contacting the credit bureau, you must request a status report which will include any indications that may have been made as to when you were reported deceased.
Identify the Inaccuracies in Your File
You should easily spot any inaccuracies that may have appeared by requesting a copy of your credit file and reviewing it. Look for things like inaccurate or incomplete addresses, dates of birth, or name spelling errors. If you notice these types of errors, they should be corrected immediately.
Stop Creditors From Reporting to the Credit Bureaus
If you want to stop the creditors from reporting your information, checks must be written. Either a printed or written statement noted on a personal check will not only stop them from posting but also force a creditor to update your account.
Even if you do not have any outstanding bills, it is essential to utilize this method to prevent future credit card and loan applications from being declined.
Obtain a Copy of Your Report
If the information reported to the CRA is inaccurate, you should request a copy of your file for review.
Identify Any Inaccuracies in the Credit Bureaus’ Files and Request Corrections
Your credit report is not the only way that creditors input data into the files; anyone from a collection agency to a landlord or a potential employer may have input data into these files.
You will want to request copies of the reports that were input by these individuals. By requesting copies, you may rectify the outdated information and receive back only the correct data.
Final Thoughts
The laws that govern sensitive credit information are complex, and it is crucial to understand your rights to become a proactive consumer. The statements above do not cover each situation but provide a general overview of how an FCRA attorney can assist you.
If you are dealing with the foreclosure of a home, have been denied credit, or have been denied employment, you need an experienced FCRA attorney to help you navigate the complex world of credit reporting.
With a law degree under his belt, Mark Scott understood very early that law communication was a relatively neglected area. He decided to help people by “translating” the language and offering information and advice in a clear, useful, and actionable manner. For this reason, instead of finding him in court, you will most likely find his name online, where he is very active and thriving as a legal columnist. His part of making the world a better place is to make the law a less convoluted maze. He aims to make it easier for people to understand when and how to seek legal counsel, how to proceed in a significant number of legal matters, and to find the proper resources so they can stand up for their rights.
