Texas Laws on Fair Credit Reporting
Two major federal laws, the Fair Credit Reporting Act and the Fair Debt Collection Practices Act, apply to Texas residents and their credit reports. Staff members of the Texas Attorney General's Office as well as the Federal Trade Commission are available to help state citizens who feel that their credit reporting rights have been violated.
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Credit Reporting Basics
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Credit reports include information about your identity, your employment status and address history. They cannot legally include your political party, race, religion or sexual preference. When you take out a credit card account or sign a loan agreement, the account will usually reflect on your credit reports. If you pay your bills on time, a positive credit rating results. If you don't pay those bills on time or fail to pay other financial obligations, such as your doctor's or utility bills, then these incidents will negatively impact your credit rating.
Credit Reporting Time Frames
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Most missed payments and collection accounts reflect negatively on your credit rating for seven years from the date of the incident. If you file for Chapter 7 bankruptcy in Texas, this fact will harm your credit rating for ten years from the date of filing the case, according to the Fair Credit Reporting Act. The same time frame applies to tax liens.
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Credit Report Access
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Creditors can only access your credit reports if you give them permission to do so. Since 2005, Texas residents have enjoyed the right to view at least one free copy of their credit reports each year. The Texas Attorney General's Office urges state residents to take advantage of this right so they can ensure their reports are accurate.
General Dispute Rights
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If you notice strange accounts or collection notices on your credit report, you may be a victim of identity theft. Immediately contact the creditor as well as the credit reporting agency in writing and demand an investigation. The Fair Credit Reporting Act allows the involved businesses 30 days to investigate such problems. Texas resident who do not get resolution may need to contact government officials or an attorney. Both the creditor and the credit reporting agency are liable if they do not fairly report credit transactions, notes the Texas Attorney General's Office.
Debt Collection Basics
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If you couldn't pay your bills as promised and a collection agency takes over the account, their representatives must uphold the Fair Debt Collection Practices Act. They cannot harass you, lie to you, discuss your case with others or call you outside the hours of 8 a.m. to 9 p.m. in your time zone. If you write a letter demanding that they stop calling you, they must comply.
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