Law provides free credit reports, but not yet -- page 2

New opt-out rules
Consumers will have the right to "opt-out" and block solicitations from affiliates of companies that they do business with. These new opt-out rules won't take effect until late 2004 or early 2005.

Disclosing bad credit news
Thanks to the new law, a bank will have to tell you if it reports any negative information about you to the credit bureaus. A bank will also have to tell you if it grants you credit at less favorable terms than those received by most other consumers. These provisions are scheduled to kick in on Dec. 1, 2004.

Reporting of false credit news
Any debt collector that learns that information on a consumer's credit report is fraudulent must inform the creditor that the information is false. No retailer or creditor may report credit information to credit bureaus that is known or believed to stem from fraud. These provisions are scheduled to begin in December 2004.

More power for identity theft victims
Identity theft victims that file police reports will be able to block fraudulent information from appearing on their credit reports.

And fraud victims will also get more help from businesses in tracking down impostors. Under the new law, an identity theft victim will be able to obtain copies of business records that list fraudulent transactions carried out by an identity thief.

Pumped-up powers for identity theft victims are scheduled to arrive on Dec. 1, 2004.

Beefed-up fraud alerts
A fraud alert is a statement that's placed on your credit report to alert creditors that your private financial information has been or may be compromised.

Identity theft victims put fraud alerts on their credit files after they learn impostors are ringing up charges in their names.

Under the new law, once a credit bureau receives a fraud alert, it must take steps to ensure that the consumer and not the thief will be granted credit in the future. This extra step could be something as simple as calling the phone number listed in a consumer fraud alert whenever a new application for credit pops up.

Muscled-up fraud alerts are scheduled to hit the scene in December 2004.

Special alerts for the military
Americans in the armed forces will be able to place special alerts in their credit files while they are serving overseas to help minimize their chances of becoming victims of identity theft. These alerts are scheduled to begin in December 2004.