New Jersey Fair Credit Reporting Act

The New Jersey Department of Banking and Insurance offers state residents several resources for managing and protecting consumer credit, especially as it pertains to credit reports. The Fair Credit Reporting Act is a federal statute that protects consumers by regulating the collection, dissemination and use of consumer credit information. Following a significant amendment of the federal law in 1996, New Jersey enacted its own Fair Credit Reporting Act (FCRA) to provide additional consumer protection with consumer credit reports and credit reporting agencies.

Significant Credit Report Protections

A credit report is a report on an individual's credit record that is often used to determine whether credit should be extended to that person. Among the numerous credit report-related protections offered by state law, three of most practical use to New Jersey consumers are the right to receive a free copy of your credit report, the right to correct inaccuracies on a credit report and the right to freeze access to a credit file.

Free Copy

New Jersey residents are entitled to a free copy of a credit report once a year from each of the major credit reporting agencies (Equifax, Experian and TransUnion). To make the process easier, a consumer may view all three credit reports at the AnnualCreditReport website. Receiving a credit score is not part of the right to a free copy of the credit report, but consumers can receive their credit score for a reasonable fee from the credit agencies.

Correcting Inaccuracies

Credit reporting agencies must investigate credit report errors brought to their attention as described by the Federal Trade Commission (FTC), usually within 30 days. The right to correct inaccuracies arises from the federal FCRA and is enforced by the FTC, but New Jersey encourages residents also to file credit-related complaints with the state Department of Banking and Insurance.

Security Freeze

A "security freeze" is a notice that prohibits consumer-reporting agencies from releasing a report that is subject to a security freeze to a third party without the consumer's express authorization. To place a security freeze, the consumer must send a written request to the reporting agency by certified or overnight mail or through a secure email connection.The agency must place a freeze on the consumer report and send a written confirmation no later than five business days after receiving the request.At that time, the agency must provide a unique personal identification number or password that the consumer can use to authorize the eventual release of information.

If consumers wish their reports to be accessible to a specific party during the freeze, they must request by the same mail or email methods that the credit-reporting agency temporarily lift the freeze. The security freeze remains in effect until the consumer requests its removal. The agency has three days to comply with a temporary lift or removal request.