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. You should also know how to obtain a copy of your credit report.
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. This prevents credit applications from becoming approved unless the freeze is granted. It can also delay new credit approvals. A security freeze is effective for one year. It can help prevent identity theft. You should however use it carefully. This process will not stop all unauthorized credit checks.
You have the right and ability to sue your employer or company
NYC has a human rights law that prohibits employers from checking credit reports. Although this law does not prohibit employers from conducting background checks and other research on you, it does stop them from using your credit information in making employment decisions. You can sue your employer if you believe your rights have been violated.
You have the right of seeing your credit reports
You have the right, under the law to access your credit reports for free if you are refused credit. This applies when an entity takes adverse action against your credit report. The entity must give you the name of its credit reporting bureau as well as a number to which you can get your report. 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.
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 to request a credit report copy
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. If you ask for a copy, credit bureaus must provide you all information within their files at the time. Additionally, you have the right to know the name of anyone who has received your report within the past year or two years. Furthermore, if you are denied a loan or credit application, the company must give you the name of the credit bureau that denied your application.
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. 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.