Know your rights and the consequences of someone checking your credit without permission. You can sue a company or employer that performs an unauthorized credit check on you, and you are entitled to see your credit report. A copy of your credit file should be available to you.
You have the right to be protected against unauthorized credit checks
Security freezes can be used to prevent unauthorised credit checks. This freeze prevents new credit applications from being approved unless you first grant it. This can also delay approval of new credit. The security freeze lasts for one year and can be used to prevent identity theft. However, you should use it wisely. You can't stop all unauthorized credit check.
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. If you feel that your employer is violating your rights, you may file a lawsuit.
You have the right to view your credit report
You have the right, under the law to access your credit reports for free if you are refused credit. This right is available if an entity has taken adverse actions against you based upon 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. Individuals on government assistance or unemployed can get free copies. This is because incorrect information can result in 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 the information was inaccurate or was intentionally misleading, you can seek punitive damages, as well as attorney's fees. It is important to know that you must prove that the unauthorized access caused you harm if you are suing.
You have a right to request a copy of your credit report
No matter if you have bad or excellent credit, you can request a copy your credit history from any one the three major credit agencies. All information contained in the credit bureaus' files must be provided to you when you request a copy. You also have the right of knowing the identity of anyone who received your report within the last year or so. The company must also give you the name and contact information of any credit bureaus that deny your loan application or denied credit application if it is denied.
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. Some employers also use it to make hiring decisions. You have the right to request a credit report copy. But you shouldn't unless there is a legitimate reason. Obtaining a copy of your credit report under false pretenses can result in civil and criminal penalties.