Know your rights and the consequences of someone checking your credit without permission. 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. You should also know how to obtain a copy of your credit report.
You have the right not to be subject to unauthorized credit checks
A security freeze can be used to prevent unauthorized credit checks. A security freeze blocks new credit applications from getting approved, unless you have granted it first. It can also slow down the approval of new credits. 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 have the right and ability to sue your employer or company
NYC's human rights law prohibits employers checking your credit. The law doesn't prohibit employers from conducting background checks, or any other research. However, it does restrict them from using credit information to make hiring decisions. If you feel your employer has violated your rights, you can file a lawsuit.
You are entitled to see your credit history
Under the law, you have the right to see your credit report for free if you have been refused credit. This applies when an entity takes adverse action against your credit report. You must be provided with the name and phone number of the credit reporting agency. Free copies of your credit report are also available to those who are unemployed or on government assistance, because inaccurate information can lead to unfair or discriminatory treatment.
You have the right to sue an employer if it uses your credit report for hiring purposes without your consent. If the information was inaccurate or was intentionally misleading, you can seek punitive damages, as well as attorney's fees. However, you should be aware that if you file a lawsuit, you will have to prove that you have been harmed by the unauthorized access.
You have the right of requesting a copy credit reports
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. The credit bureaus must give you a copy of all information they have in their files when you request it. You have the right to see the names of all people who have received your credit report in the last year or two. You can also request the name of the credit bureau from which you were denied a loan or credit application.
Credit reports can have a significant impact on your purchasing power and ability to get a job. Credit bureaus sell this information to businesses for use in loan and insurance decisions. This information is used by employers for hiring decisions. Although you can request a copy, it is best to wait until you have a valid purpose. False pretenses to obtain a copy can lead to civil and criminal sanctions.