If you are denied credit, the Equal Credit Opportunity Act (ECOA) requires that the creditor gives you a notice with specific reasons your application was denied. You have 60 days to reach out and request the specific reason as to why you were denied.
You can be denied credit because of incorrect information from a credit report. The Fair Credit Reporting Act (FCRA) requires the creditor to give you the name, address and phone number of the credit reporting agency that supplied the incorrect information. You should contact that agency to find out what your report said. You can access this information for free when requested within 60 days of being denied.
Your Rights under the FCRA
You have the right to receive a copy of your credit report. The copy must contain all the information in your file at the time of your request.
If you contest the accuracy of the information in your report, you should file a dispute with the credit bureau and with the company that furnished the information to the bureau. Both the credit bureau and the furnisher of information have a legal obligation to investigate your dispute.
Additionally, you may add a summary explanation to your credit report if your dispute is not properly resolved.
Your Rights Under the ECOA
The ECOA prohibits credit discrimination based on sex, race, marital status, religion, national origin, age, or receipt of public assistance. Creditors may ask for this information (except religion) in certain situations, but may not use it in their decision-making.
The ECOA also gives you the legal right to know why you were denied credit.
Representation for Denied Credit
Maginnis Howard’s consumer law attorneys are committed to helping clients wronged by big corporations, banks, creditors, and collection agencies. Our firm handles FCRA cases on a contingency basis, meaning you don’t owe attorney’s fees unless we recover compensation. Maginnis Howard handles FCRA cases across the Carolinas from our offices in Raleigh, Charlotte, and Fayetteville. If you have any questions regarding this blog post or want to speak with one of firm’s consumer law attorneys, visit our contact page or use the Live Chat feature at the bottom of your screen.
