California use state and federal laws to regulate credit reporting.
Credit reporting agencies furnish consumer credit histories in the form of credit reports. These reports are relied upon by creditors and other lenders. Regulatory laws in California require credit reporting agencies to provide reliable and secure credit information.
Laws
California's Consumer Credit Reporting Agencies Act (CCRAA) is the state law that governs credit reporting operations. Federal laws such as the Fair Credit Reporting Act (FCRA) are also employed by the state.
Access
The CCRAA and the FCRA require credit reporting agencies provide consumers with a toll-free number to contact them. They must also allow for consumer access to the information contained in the consumer's credit files. Under the FCRA, a consumer is entitled to a free credit report every 12 months from each of the major credit agencies (Experian, Equifax and TransUnion).
Fraud
To combat credit fraud and identity theft, California allows consumers to request a security alert and freeze. A security alert allows a consumer to put a notation in his credit file warning creditors his identity may have been used without his consent. A security freeze gives a consumer the right to place a hold on his credit file so a creditor cannot view the information. Security alerts and freezes can be requested by contacting a major credit reporting agency.
Time Frame
Credit reporting agencies are only allowed to report certain consumer information for a specific time frame. Adverse credit information such as judgments, liens, civil suits and collection actions can only be reported for seven years. Bankruptcy information cannot be reported after 10 years.
Accuracy
To help insure consumer credit information is accurate, the CCRAA and FCRA give consumers the right to dispute information. Any information a California resident feels is inaccurate can be disputed by contacting a major credit reporting agency in writing. Upon notice, the credit reporting agency has 30 days to investigate the dispute.
