Clean your Credit Beneficiary Style Ebook

By: PATHS2FRDM Director

Caleb Holt ©
 Introduction
Believe it or not the laws in regards to consumer reporting are overwhelmingly in your favor. 1st
I would like to take you to the Fair Credit Reporting Act which is 15 USC 1681-1681 x. The Act
also known as Title VI of the Consumer Credit Protection Act protects information collected
by consumer reporting agencies such as credit bureaus, medical information companies and
tenant screening services. Information in a consumer report cannot be provided to anyone
who does not have a purpose specified in the Act. Companies that provide information to
consumer reporting agencies also have specific legal obligations, including the duty to
investigate disputed information. In addition, users of the information for credit, insurance, or
employment purposes must notify the consumer when an adverse action is taken on the basis of
such reports. The Fair and Accurate Credit Transactions Act added many provisions to this
Act primarily relating to record accuracy and identity theft. The Dodd-Frank Act transferred
to the Consumer Financial Protection Bureau most of the rulemaking responsibilities added to
this Act by the Fair and Accurate Credit Transactions Act and the Credit CARD Act, but the
Commission retains all its enforcement authority.

The main take away from the previous paragraph is that not only are there regulations to protect
you and your information every company dealing with a consumer has agreed they would follow
those regulations and if they chose not to we have proper authorities to inform. The Consumer
Finance Protection Bureau and the Federal Trade Commision are great examples of said
agencies. The CFPB website is https://www.consumerfinance.gov/ this is where we will handle
most of our complaints with the reporting agencies. It also is a great resource to learn about
consumer protection laws in all aspects, not just credit. `

Table of Contents
● FERPA( Student Loan Deletion) Page 3
● Fair Credit Reporting Act Starts on Page 3
● Privacy Act 1974 Starts on Page 6
● Opt out Laws Start on Page 7
● CFPB Starts on Page 10
● Tips Start on Page 14
 Family Educational Rights and Privacy Act (FERPA)
● The Family Educational Rights and Privacy Act (FERPA) is a federal law enacted in
1974 that protects the privacy of student education records. FERPA applies to any
public or private elementary, secondary, or post-secondary school. 20 USC 1232g (b)
● Use this Law to remove student loans

Fair Credit Reporting Act

I recommend reading the ENTIRE act as it will only help your understanding but I am
going to highlight a few examples.
● 15 U.S. Code § 1681 - Congressional findings and statement of purpose
○ a)Accuracy and fairness of credit reporting
■ The Congress makes the following findings:
■ (4)There is a need to ensure that consumer reporting agencies exercise
their grave responsibilities with fairness, impartiality, and a respect for the
consumer’s right to privacy.
○ (b)Reasonable procedures
■ It is the purpose of this subchapter to require that consumer reporting
agencies adopt reasonable procedures for meeting the needs of commerce
for consumer credit, personnel, insurance, and other information in a
manner which is fair and equitable to the consumer, with regard to the
confidentiality, accuracy, relevancy, and proper utilization of such
information in accordance with the requirements of this subchapter.
● As you can see there is a need to protect your right to privacy.
● Important Definitions from 15 U.S. Code § 1681a - Definitions; rules of construction
○ The term “consumer reporting agency” means any person which, for monetary
fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in
part in the practice of assembling or evaluating consumer credit information or
other information on consumers for the purpose of furnishing consumer reports to
third parties, and which uses any means or facility of interstate commerce for the
purpose of preparing or furnishing consumer reports.
○ The term “consumer” means an individual.
○ The term “consumer report” means any written, oral, or other communication of
any information by a consumer reporting agency bearing on a consumer’s credit
worthiness, credit standing, credit capacity, character, general reputation, personal
characteristics, or mode of living
○ (2) Exclusions
■ (A)(i) report containing information solely as to transactions or
experiences between the consumer and the person making the report;
 ■ Reporting Transaction history is illegal
● 15 U.S. Code § 1681b - Permissible purposes of consumer reports
○ Subject to subsection (c), any consumer reporting agency may furnish a consumer
report under the following circumstances and no other
■ (2) In accordance with the written instructions of the consumer to
whom it relates.
■ They need your written consent to add anything to your consumer report if
you did not give this authorization that is a violation of the Fair Credit
Reporting Act
■ P.L 90-321 (82 Stat. 146) which is law law that backes the code is even
stricter as it states that any agency can only get your report in response to
a request by the head of a State or local child support enforcement agency
(or a State or local government official authorized by the head of such an
agency)
● 15 U.S. Code § 1681c - Requirements relating to information contained in consumer
reports
○ Except as authorized under subsection (b), no consumer reporting agency may
make any consumer report containing any of the following items of information:
■ Any other adverse item of information, other than records of
convictions of crimes which antedates the report by more than seven
years.
■ No adverse item besides the conviction of crimes should be on your report
any item that is a derogatory mark is not allowed into consumer reports
this is another violation
● 12 CFR § 1022.3 Definitions
○ Identity theft means a fraud committed or attempted using the identifying
information of another person without authority.
○ Anything added to your report without your written consent could be considered
Identity theft
● 15 U.S. Code § 1681c–2 - Block of information resulting from identity theft
○ Except as otherwise provided in this section, a consumer reporting agency shall
block the reporting of any information in the file of a consumer that the
consumer identifies as information that resulted from an alleged identity
theft, not later than 4 business days after the date of receipt by such agency
of—
■ (1)appropriate proof of the identity of the consumer;
■ (2)a copy of an identity theft report;
■ (3)the identification of such information by the consumer; and
■ (4)a statement by the consumer that the information is not information
relating to any transaction by the consumer.
 ○ If you chose to list that in your complaint YOU MUST provide the
information listed above. Identity theft reports can be filed with the Federal
Trade Commission on their website
● 15 U.S. Code § 1681e - Compliance procedures
○ (a)Identity and purposes of credit users
■ Every consumer reporting agency shall maintain reasonable procedures
designed to avoid violations of section 1681c of this title and to limit
the furnishing of consumer reports to the purposes listed under
section 1681b of this title. These procedures shall require that prospective
users of the information identify themselves, certify the purposes for
which the information is sought, and certify that the information will be
used for no other purpose. Every consumer reporting agency shall make a
reasonable effort to verify the identity of a new prospective user and the
uses certified by such prospective user prior to furnishing such user a
consumer report. No consumer reporting agency may furnish a consumer
report to any person if it has reasonable grounds for believing that the
consumer report will not be used for a purpose listed in section 1681b of
this title.
■ (b)Accuracy of report
■ Whenever a consumer reporting agency prepares a consumer report it shall
follow reasonable procedures to assure maximum possible accuracy of the
information concerning the individual about whom the report relates.
○ By violating section 1681b for permissible purpose and 1681c for information
contained in consumer reports they are also violating compliance procedures
under this title.
● 15 U.S. Code § 1681n - Civil liability for willful noncompliance
○ (a)In general
○ Any person who willfully fails to comply with any requirement imposed under
this subchapter with respect to any consumer is liable to that consumer in an
amount equal to the sum of—
■ (A)any actual damages sustained by the consumer as a result of the failure
or damages of not less than $100 and not more than $1,000; or
■ (B)in the case of liability of a natural person for obtaining a consumer
report under false pretenses or knowingly without a permissible purpose,
actual damages sustained by the consumer as a result of the failure or
$1,000, whichever is greater;
○ If you can prove they wilfully violated the act you are entitled to at least 1,000$
per violation plus any other damages you have sustained as a result of their failure
to follow the law. If you have to file more than 1 complaint, wilful noncompliance
can easily be proven as they had a full understanding of the violations after you
complained the 1st time.
 ○ Every company in their agreements with consumers said they would follow the
law and agreed to do so.They are aware that they are breaking the law.
● 15 U.S. Code § 1681o - Civil liability for negligent noncompliance
○ In general
○ Any person who is negligent in failing to comply with any requirement imposed
under this subchapter with respect to any consumer is liable to that consumer in
an amount equal to the sum of
■ (1)any actual damages sustained by the consumer as a result of the failure
○ Negligent noncompliance means the law was violated not on purpose but just due
to a lack of knowledge on the required reporting procedures.

● 15 U.S. Code § 1681s–2 - Responsibilities of furnishers of information to consumer

reporting agencies
○ (1)Prohibition
○ (A)Reporting information with actual knowledge of errors
■ A person shall not furnish any information relating to a consumer to any
consumer reporting agency if the person knows or has reasonable cause
to believe that the information is inaccurate.
■ (B)Reporting information after notice and confirmation of errors
■ A person shall not furnish information relating to a consumer to any
consumer reporting agency if—
■ (i)the person has been notified by the consumer, at the address specified
by the person for such notices, that specific information is inaccurate; and
■ (ii)the information is, in fact, inaccurate.
○ Once you notify the consumer agencies that there is inaccurate information they
must immediately stop reporting that information until they can prove that it is
valid.
● Those are a few violations of the Fair Credit Reporting Act that you can use in your
complaint against not only the reporting agencies but the furnisher of that information to
them.

Privacy Act of 1974 ( 5 U.S. Code § 552a )

● Important Definitions
○ (4)the term “record” means any item, collection, or grouping of information about
an individual that is maintained by an agency, including, but not limited to, his
education, financial transactions, medical history, and criminal or
employment history and that contains his name, or the identifying number,
 symbol, or other identifying particular assigned to the individual, such as a
finger or voice print or a photograph;
○ This includes consumer reports
● (b)Conditions of Disclosure.—No agency shall disclose any record which is contained
in a system of records by any means of communication to any person, or to another
agency, except pursuant to a written request by, or with the prior written consent of,
the individual to whom the record pertains, unless disclosure of the record would be
○ (12)to a consumer reporting agency in accordance with section 3711(e) of title 31.
○ Again they need prior written instruction of the individual to whom it relates.
○ Section 3711(e) of title 31 States
■ (1)When trying to collect a claim of the Government under a law except
the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.), the head of an
executive, judicial, or legislative agency shall disclose to a consumer
reporting agency information from a system of records that a person is
responsible for a claim if
■ (E)the head of the agency has established procedures to (iii)get
satisfactory assurances from each consumer reporting agency that the
agency is complying with all laws of the United States related to providing
consumer credit information; and
○ Either way they have violated not only the Fair Credit Reporting Act but also the
Privacy Act of 1974

Opt Out Laws

● PART 1016 - PRIVACY OF CONSUMER FINANCIAL INFORMATION

(REGULATION P)
● 12 CFR § 1016.1 Purpose and scope.
○ (a) Purpose. This part governs the treatment of nonpublic personal information
about consumers by the financial institutions listed in paragraph (b) of this
section. This part:
■ (1) Requires a financial institution to provide notice to customers
about its privacy policies and practices;
■ (2) Describes the conditions under which a financial institution may
disclose nonpublic personal information about consumers to nonaffiliated
third parties; and
■ (3) Provides a method for consumers to prevent a financial institution
from disclosing that information to most nonaffiliated third parties by
“opting out” of that disclosure, subject to the exceptions in §§ 1016.13,
1016.14, and 1016.15.
 ○ Every company owes you a privacy notice before they furnish any
information to our consumer report
● 12 CFR § 1016.4 Initial privacy notice to consumers required.
○ (a) Initial notice requirement. You must provide a clear and conspicuous notice
that accurately reflects your privacy policies and practices to:
■ (1) Customer. An individual who becomes your customer, not later than
when you establish a customer relationship, except as provided in
paragraph (e) of this section; and
■ (2) Consumer. A consumer, before you disclose any nonpublic
personal information about the consumer to any nonaffiliated third
party,
● 12 CFR § 1016.7 Form of opt out notice to consumers; opt out methods.
● Section (a)
○ (1) Form of opt out notice. If you are required to provide an opt out notice under
§ 1016.10(a), you must provide a clear and conspicuous notice to each of your
consumers that accurately explains the right to opt out under that section. The
notice must state:
■ (i) That you disclose or reserve the right to disclose nonpublic personal
information about your consumer to a nonaffiliated third party;
■ (ii) That the consumer has the right to opt out of that disclosure; and
■ (iii) A reasonable means by which the consumer may exercise the opt
out right.
○ (2) Examples
■ (ii) Reasonable opt out means. You provide a reasonable means to
exercise an opt out right if you:
■ (A) Designate check-off boxes in a prominent position on the relevant
forms with the opt out notice;
■ (B) Include a reply form together with the opt out notice that, in the case
of financial institutions described in § 1016.3(l)(3) of this part, includes
the address to which the form should be mailed;
■ (C) Provide an electronic means to opt out, such as a form that can be sent
via electronic mail or a process at your Web site, if the consumer agrees to
the electronic delivery of information; or
■ (D) Provide a toll-free telephone number that consumers may call to opt
out.
■ (iii) Unreasonable opt out means. You do not provide a reasonable means
of opting out if:
■ (A) The only means of opting out is for the consumer to write his or her
own letter to exercise that opt out right; or
 ■ (B) The only means of opting out as described in any notice subsequent to
the initial notice is to use a check-off box that you provided with the initial
notice but did not include with the subsequent notice.
● (g) Time to comply with opt out. You must comply with a consumer's opt out
direction as soon as reasonably practicable after you receive it.
● (h) Continuing right to opt out. A consumer may exercise the right to opt out at any
time.
● (i) Duration of consumer's opt out direction.
○ (1) A consumer's direction to opt out under this section is effective until the
consumer revokes it in writing or, if the consumer agrees, electronically.
○
● 15 U.S. Code § 6802 - Obligations with respect to disclosures of personal
information
○ (a)Notice requirements
■ Except as otherwise provided in this subchapter, a financial institution
may not, directly or through any affiliate, disclose to a nonaffiliated third
party any nonpublic personal information, unless such financial institution
provides or has provided to the consumer a notice that complies with
section 6803 of this title.
○ (b)Opt out
■ (1)In general
■ A financial institution may not disclose nonpublic personal information to
a nonaffiliated third party unless—
■ (A)such financial institution clearly and conspicuously discloses to the
consumer, in writing or in electronic form or other form permitted by the
regulations prescribed under section 6804 of this title, that such
information may be disclosed to such third party;
■ (B)the consumer is given the opportunity, before the time that such
information is initially disclosed, to direct that such information not
be disclosed to such third party; and
■ (C)the consumer is given an explanation of how the consumer can
exercise that nondisclosure option.
○ Once again they must give you an opt out notice for anything that is to be added
to your consumer report.
● 15 U.S. Code § 6805 - Enforcement
○ (a)In general
■ Subject to subtitle B of the Consumer Financial Protection Act of 2010 [12
U.S.C. 5511 et seq.], this subchapter and the regulations prescribed
thereunder shall be enforced by the Bureau of Consumer Financial
Protection, the Federal functional regulators, the State insurance
authorities, and the Federal Trade Commission with respect to financial
 institutions and other persons subject to their jurisdiction under applicable
law,
○
● You have the right to opt out of anything on your report at any time and the
companies must comply as soon as reasonably practicable after you send them a
notice. They have given you unreasonable means to opt out so you will have to write
your own letter directing them to stop reporting in accordance with the laws listed
above.

Consumer Finance Protection Bureau

● Go to https://www.consumerfinance.gov/

●
● Click on Submit a Complaint
● Scroll down until you see this:

●
● Click on Start a new complaint
● That will take you to this page

●
● You must create an account here in order to submit a complaint
● If you already have an account click the blue link to go to the login page
●
● Click on start a new complaint
● That will take you here

●
● Click on Credit Reporting

● Scroll down and Click Credit Reporting Again

●
● Go to the next page
● Select the type of Credit reporting issue I mostly chose Improper use of report but
depending on your goal you might choose differently. For this example Improper use is
what we will use

●
● Select Reporting Company Used your report improperly

●
● If you have tried to fix with the company before select Yes if not then select no and go to
the next page
● Now It's time to describe what happened Include all relevant account information
including account numbers, dates etc.

●
● Example (Please do not copy word for word make it your own we aren't Robots)
○ “According to the Fair Credit Reporting Act 15 USC 1681 section 602 a states
"There is a need to insure that consumer reporting agencies exercise their grave
responsibilities with fairness, impartiality, and a respect for the consumer’s right
to privacy." Equifax and Experian are consumer reporting agencies and I am the
Consumer. I have the right to make sure my private information isn't shared which
is backed by 15 USC 6801 which states"It is the policy of the Congress that each
financial institution has an affirmative and continuing obligation to respect the
privacy of its customers and to protect the security and confidentiality of those
customers’ nonpublic personal information." (Furnisher of information to
credit agencies) is a financial institution by definition under that title. 15 USC
1681 section 604 a section 2 states that "In general Subject to subsection (c) , any
consumer reporting agency may furnish a consumer report under the following
circumstances and no other: in accordance with the written instructions of the
consumer to whom it relates." (Furnisher of information to credit agencies) the
financial institution and the Consumer reporting agencies Equifax and Experian
do not have my consent to furnish this information and they surely do not have
my written consent. Any and all consent to Equifax, Experian, (Furnisher of
information to credit agencies) whether it be verbal, non-verbal, written, implied
or otherwise is revoked. 15 USC 6802 (b)(c) states that "A financial institution
may not disclose nonpublic personal information to a nonaffiliated third party
unless— the consumer is given an explanation of how the consumer can exercise
that nondisclosure option." (Furnisher of information to credit agencies) Never
informed me of my right to exercise my nondisclosure option. Not only that 15
USC 1681C (a)(5) states" Except as authorized under subsection (b), no consumer
reporting agency may make any consumer report containing any of the following
items of information Any other adverse item of information, other than records of
convictions of crimes which antedates the report by more than seven years." This
account is an adverse item they are reporting again without my permission which
 is against the law. 15 U.S. Code § 1681s–2 (A)(1) A states "A person shall not
furnish any information relating to a consumer to any consumer reporting agency
if the person knows or has reasonable cause to believe that the information is
inaccurate. 15 U.S. Code § 1681e states" Every consumer reporting agency shall
maintain reasonable procedures designed to avoid violations of section 1681c of
this title and to limit the furnishing of consumer reports to the purposes listed
under section 1681b of this title.” Equifax and Experian are not maintaining
reasonable procedures. Also 12 CFR § 1016.7 states that " A consumer may
exercise the right to opt out at any time." I am opting out of your reporting
services.”
● Put what you think would be a fair resolution to the issue

●
● Attach any supporting documents you have and go to the next page
○ Examples
■ Opt Out Letter
■ Any notices you have received
■ A copy of your Credit Report

●
● Add the applicable companies including the Furnisher of the information to credit
agencies and the agencies themselves
●
● You can add 3 companies per complaint select to complain about another company then
click next

● Add your required information and finish the complaint

Tips
● Remove any old or duplicate addresses from your report if they give you any issues tell
them it is a non mailable address
● Remove any old or duplicate phone numbers
● Remove any variations of your name that are incorrect
● Place a security freeze on all your reports
● Opt out of the following agencies
○ CoreLogic
 ○ Innovis
○ ARS (Advanced Risk Solutions)
○ SageStream
○ LexisNexis
○ Early Warning Services
● Get free copies of your report here: https://www.annualcreditreport.com/index.action
● Stay consistent do not give up take the laws you have read and put them to good use

Clean your Credit Beneficiary Style Ebook

By: PATHS2FRDM Director
Caleb Holt ©