Are you worried about the Y2K bug? Whether you answer yes or no to that question, it makes sense to take some reasonable steps to protect your financial information from possible problems. You should be prepared for all the potential effects on your credit standing that the Year 2000 date change could bring. Although many companies in the financial industry are Y2K compliant, others aren’t—and that could have an impact on your credit status. The Y2K problem simply refers to older computers’ inability to read or recognize dates after 1999. Due to a widespread programming oversight, many computer systems were taught to read a year’s date by the last two digits, while assuming that the first two digits are “19.” Therefore, when the Year 2000 arrives, those computers that have not been reprogrammed may register the year as 1900. This glitch could cause some computerized systems to shut down or malfunction. The financial industry, like banking as a whole, relies heavily on computerized systems to perform a variety of date-sensitive transactions. Although most banks, lenders and credit bureaus have taken steps to make sure their systems are Y2K compliant, the system is very complex and it is possible that information regarding your credit could be affected. For instance, some Y2K-generated computer malfunctions could result in billing errors, delays in clearing checks, improper delinquency notices and erroneous penalties or late fees. Any of these situations, if reported, could impact your credit status. So, how do you take steps to protect your creditworthiness from the Y2K bug? While financial institutions, under the federal government’s watchful eye, are taking steps to ensure that their computer systems will be able to process transactions accurately come the Year 2000, it is still a good idea for consumers to take a few precautions to ensure the safety of their good credit reputation. One measure that the Federal Trade Commission (FTC) and many financial planners strongly recommend is for consumers to obtain copies of their credit reports--both before January 1, 2000, and after--in order to verify the information is still accurate after the date change. The CreditCheck Monitoring Service allows its members the perfect opportunity to follow this advice--Providing you with free copies of your credit report on request. In order to keep your credit records and reputation as safe as possible from any Y2K-related glitches, it is suggested that you keep hard copies of your credit reports (either retain the copies sent by mail or print out the reports that you access online). Another way to protect yourself from the effects of the Y2K bug is to keep cancelled checks and copies of payment slips, credit card receipts, banking records and the like—starting from several months before the turn of the year to several months after the millennium has dawned. This will provide you with proof of your payment history and give you a means to compare your pre- and post-Year 2000 credit transaction records and check them for inaccuracies. Should you wish to learn more about the Y2K bug and its possible ramifications for your credit standing, you can contact the FTC, either online at www.ftc.gov, or at the following address: Consumer Response Center Federal Trade Commission Washington, DC 20580 (202) FTC-HELP (382-4357) TDD: (202) 326-2502
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