The Federal Trade Commission has recommended several changes to the Fair Credit Reporting Act, including requirements that consumers be sent free annual credit reports and that they get notices when derogatory information has been used.
FTC Chairman Timothy J. Muris made the recommendations in testimony before the House Committee on Financial Services.
Muris, while saying the FTC supports existing national standards, called for additional protections against identity theft, including a national fraud alert system.
He also urged that credit granters provide clearer notices to consumers allowing them to opt out of prescreened offers.
Muris testified that free credit reports should be accompanied by information about how credit scores are derived and how they can be improved.
He added that consumers should be notified when they are offered “less desirable credit terms” because of information in their credit reports.
In addition, Muris would require credit furnishers to investigate disputes received directly from consumers.
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