The nation's three largest credit reporting agencies have agreed to pay a total of $2.5 million to settle federal charges that they blocked millions of consumers from discussing the contents of their credit files and correcting possible errors.

The payments -- $1 million each by Experian (formerly known as TRW) and Trans Union, and $500,000 by Equifax -- are part of a settlement negotiated with the Federal Trade Commission to resolve charges that the three agencies violated the Fair Credit Reporting Act.

Based on the information they have in their files, the three repositories provide credit scores that are now used by most mortgage lenders use to determine whether potential buyers or refinancers qualify for a home loan.

The law is designed to promote accuracy, fairness and privacy of information in the files of every credit reporting agency.

But to give consumers the ability to more easily resolve inaccuracies in their records, Congress amended the statute in 1997 to require the "big three" to provide consumers who received a copy of their credit report with a toll-free telephone number at which personnel would be accessible to answers queries during normal business hours.

According to the FTC's charges, they never did.

While each established toll-free lines, the consumer agency said, they violated the accessibility requirement because a substantial number of callers have been unable to speak with real live people. In some cases, the agency said, some callers were kept on hold for unreasonably long periods.

"The reality is that consumers never got the access the law guarantees," said Jodie Bernstein, director of the agency's Bureau of Consumer Protection. "These cases demonstrate in no uncertain terms that it's time for Equifax, Experian and Trans Union to pick up the phone and meet their obligations to consumers."

The complaints against Chicago-based Trans Union and Experian of Orange, Calif., alleged that since the amendments went into effect in September 1997, more than a million callers heard a busy signal or a recorded message advising them to call back later because all representatives were busy.

The complaint against Equifax of Atlanta involves a similar allegation involving "hundreds of thousands" of callers.

But Equifax and Trans Union also were charged with blocking certain incoming calls based upon the location of the caller.

The settlement, which does not constitute an admission of guilt, also contains specific injunctive provisions that ensure the three agencies follow the rules.

They are required to maintain a blocked-call rate no greater than 10 percent and to keep their average hold-time to no more than 210 seconds.