Fergie's Tech Blog

In Rehab? It Could Be On Your Credit Report

Bob Sullivan writes in The Red Tape Chronicles:

Mike Herwig looked at his credit report recently and saw something even more disturbing than past due accounts.

He saw the words "Starlite Recovery Center."

As the name hints, Starlite is a drug and alcohol treatment clinic in Texas. Herwig, a 36-year-old Boston resident, received treatment for alcoholism there two years ago and wanted that to remain secret. But now he fears he's been outed as a recovering addict in front of future employers, landlords, insurance companies and any other organization that pulls his credit report.

Experian, which issued the credit report, says Herwig's fears are unfounded. Starlite's name is omitted from copies of the report given to others and appears only on Herwig's personal report, according to Experian’s Don Girard. In fact, federal law prohibits credit bureaus from listing the name of any medical treatment facility on a credit report furnished to lenders or employers, he said.

Still, Herwig's story is instructive about the alarming things that can appear on credit reports, and the kind of rights consumers have.

posted by Fergie @ 5/09/2006 09:15:00 AM