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 not to be subject to unauthorized credit checks
You can use a security freeze to prevent credit checks being unauthorized. This freeze prevents new credit applications from being approved unless you first grant it. It can also slow down the approval of new credits. A security freeze is valid for one year and can help you prevent identity theft. You should however use it carefully. However, this process won't stop you from doing unauthorized credit checks.
You have the right and ability to sue your employer or company
NYC's human rights law prohibits employers checking your credit. 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. A lawsuit can be filed if your employer violates your rights.
You have the right to view your credit report
Under the law, you have the right to see your credit report for free if you have been refused credit. This right applies when an entity has taken adverse action against you based on your credit report, such as denying credit, terminating credit, or changing an insurance offer. The entity must provide the name of the credit report bureau and a telephone number that allows you to obtain 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. You can also seek punitive damages and attorney's fees if the information is inaccurate or misleading. You should know that if you decide to sue, you must prove that you were harmed by unauthorized access.
You have the right of requesting a copy credit reports
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. When you request a copy, the credit bureaus must provide you with all of the information in their files at the time of your request. You have the right to see the names of all people who have received your credit report in the last year or two. If you are denied a loan, or credit application, the company must provide the name of any credit bureau that denied you.
Your purchasing power, as well as your chances of getting a new job, can be affected by the information on your credit report. This information is sold to credit bureaus by businesses to help them make loan and insurance decisions. Employers also use it for making hiring decisions. It is possible to request a copy your credit report. However, you should not do this unless you have a legitimate purpose. False pretenses that you are requesting a copy your credit report can result in both civil and criminal penalties.