We all know that credit reporting bureaus track, and report to others, information regarding our debts and debt payment history. But did you know that they are also sharing information about our income too? And in many cases, they just estimate what we make. This WSJ article reports how information about your income is increasingly being used by creditors. You may wish to familiarize yourself with this information. Are you comfortable knowing that a bureau can give creditors and others information about your income? Often without your permission and many times an imprecise estimate. Yet, as a citizen, you can’t find out what information about your income they are sharing?
Credit-card companies can then double-check what we have long reported ourselves against these estimates—which often don’t require consumer consent and aren’t available to consumers for review.
Equifax, through its Work Number business, also provides employment verification and payroll data collected electronically from about 2,000 employers. Lenders, potential lenders, insurers and debt collectors can access the information without getting an individual’s specific consent if they’re using it for permissible purposes under credit laws.
~WSJ.com
Additionally, if you are not already familiar with IRS form 4506-T, you will want to learn about it. This form gives your permission for others to receive a copy of your personal tax returns for each year specified on the form. It is not a new form, but it would appear that more lenders may be requiring this form in the future. You will want to ensure that you understand the form, what it does and does not allow, and how the authorized party will protect your personal information, once received from the Internal Revenue Service.
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