When someone checks your credit without your permission, you should be aware of your rights and the potential consequences. 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. Also, you should know how to request a copy of credit reports.
You have the right of being protected against credit checks that are not authorized
You can use a security freeze to prevent credit checks being unauthorized. The security freeze stops new credit applications being approved until you grant it. It can also hinder the approval process. The security freeze lasts for one year and can be used to prevent identity theft. But you need to use it responsibly. This process will not stop all unauthorized credit checks.
You can sue a company, or an employer.
NYC employers cannot check your credit score because of a human right law. This law does not prevent employers from conducting background checks or other research, but it does prevent them from using your credit information to make employment decisions. You have the right to sue your employer if they violate your rights.
You have the right to view your credit report
If you are denied credit, the law gives you the right to view your credit report free of charge. 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. The entity must provide the name of the credit report bureau and a telephone number that allows you to obtain your report. For those who are not employed or receiving government assistance, free copies of your credit report will be provided.
Employers can sue you for damages if they used your credit reports without your permission in order to hire employees. If you believe the information was false or misleading, you may be able to seek punitive and attorney's costs. You should know that if you decide to sue, you must prove that you were harmed by unauthorized access.
You have the right request a copy to 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. All information contained in the credit bureaus' files must be provided to you when you request a copy. Additionally, you have the right to know the name of anyone who has received your report within the past year or two years. If you are denied a loan, or credit application, the company must provide the name of any credit bureau that denied you.
Your purchasing power, as well as your chances of getting a new job, can be affected by the information on your credit report. Credit bureaus sell credit information to companies for insurance and loan decisions. This information is used by employers for hiring decisions. A copy of your credit history can be requested, but only if you have a legitimate reason to do so. False pretenses to obtain a copy can lead to civil and criminal sanctions.