Legal Question in Credit and Debt Law in Maryland

Re: The legal use of a credit report

Derogatory information such as late payments, delinquencies, penalties, judgments, and any other adverse information within your credit report can be used by any lender or leasor in arriving at a decision to extend credit or make a lease. If there is infomation on your credit report that is other than related to your establishment or maintaining of credit, then this information is being reported against Federal law. Where there is incorrect information, you should correct it. Where a credit reporting agency does not properly investigate and correct, Federal law has been violated.

There are several methods to calculate a credit score. The most commonly used is the FICO score. The FICO takes recent payment history into account when weighing it against much older delinquent payments. In summary, anything that is properly reflected on your credit report is fair game when a leasor decides whether or not to give you a lease and YOU bear the burden to correct anything that is not accurate on your credit report.

Under Maryland law, you are entitled to a free copy of your credit report. The three major and often used credit reporting agencies are: TransUnion, Experian, and Equifax. Running your credit report often may adversely affect your credit. Every time you allow your credit report to be run your credit score erodes, so you should consider this when allowing creditors to run reports. Running your own report once a year will not impart much, if any, adverse affect upon your credit.

I am a general practice attorney with reasonable rates. Referrals are appreciated.

G. Joseph Holthaus III

(410) 799-9002

Re: The legal use of a credit report

Yes, as long as the information is apparently true.