Opting Out?

[maluba]

Can someone explain to me what opting out actually is? How does one go about doing it and what are the benefits/drawbacks? Thank you!

[RobertEG]

The specifics are set forth in FCRA 604(e), if you want to view all the statutory provisions.

Basically, the FCRA permits parties to receive a list of names and addresses of consumers from the CRAs in order to make them a firm, unsolicted offer for credit or insurance.  FCRA 604(c)(2).

FCRA 604(e) permits consumers to send the CRAs an election to have their names and adresses excluded from any such list provided by the CRAs.

Upon receipt of such a election from a consumer, the CRAs must exclude the consumer from any such list within 5 business days, and the election lasts for five years.

[Barneygirl]

I've heard that opting out sometimes gives you a small bump in your overall credit score.  Has anyone opted out and actually seen this happen?  or is it an old wives tale?