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No free credit reports--yetMortgagePress.comFree credit report,FTC
Despite recent efforts to add a provision to the Fair Credit
Reporting Act that would provide consumers with one free credit
report annually, the Federal Trade Commission has announced that
the ceiling on allowable charges for certain disclosures, including
credit reports, will remain at $9, until December 2004. At the end
of the year, the FCRA extension bill, the Fair and Accurate Credit
Transactions Act, will go into effect and finally establish the
free credit report privilege. For now, though, in those cases where
the FCRA does not require the disclosure to be made without charge,
a consumer reporting agency may charge up to $9 for making a
disclosure to a consumer, provided the charge is indicated to the
consumer before the disclosure is made.
In preparation for the free credit report disclosure provision
that will be introduced next year, the FTC has been charged by
Congress to establish a central source through which consumers will
obtain the reports. In structuring the distribution system, FTC
staffers are focusing on keeping consumers' credit information
protected from identity theft. They also want to shield credit
bureaus from the sudden surge of requests they expect when the free
reports first become available.
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