A little known credit check that telecom and utility companies do among themselves may have a significant impact on your ability to receive services and whether or not a deposit will be required. The National Consumer Telecom & Utilities Exchange (NCTUE) is a member-owned database managed by Equifax. According to the NCTUE website, the database exchanges information on new connects and defaulted and/or fraudulent accounts among members. It also gives the companies access to consumers' current contact information on defaulted consumers, and provides treatment and collection strategies for alleged unpaid bills.

The twist here is that not only have you never heard of this company, but according to the latest issue of Privacy Times, NCTUE may be running afoul of the Fair Credit Reporting Act.

According to the Privacy Times, it appears that some of the companies using the database may not be providing notices to consumers when the companies take an adverse action against a consumer based upon the information in the NCTUE database.

Neither Equifax nor NCTUE specifically responded to the Privacy Times inquiry as to whether it believed NCTUE was subject to the Fair Credit Reporting Act or whether consumers have access to the information in their files and the ability to dispute and have corrected inaccurate or incorrect information.

What seems clear though is that the NCTUE should be subject to the Fair Credit Reporting Act because it appears to be providing a consumer report within the statutory definition.

UCAN, therefore wants to know about your experiences.

Have you ever been denied service or charged a deposit based on your NCTUE file?

Has a telecom or utility ever sent you a notice that adverse action has been taken based upon your file in this database?

Have you ever requested to see your file from NCTUE or Equifax and did they give you access?

Having an accurate credit profile is a necessity today and any database that affects your ability to receive essential services such water, gas, electricity, and phone should be available to you.

The Privacy TImes is edited by Evan Hendricks. The referenced article "Is Little Known Database Subject to FCRA? Equifax, NCTUE won't say," is available in Vol. 29 No. 19 October 23, 2009 of the Privacy Times.