The Fair Credit Reporting Act (FCRA) ensures accuracy, fairness and privacy of credit information by providing rights to consumers regarding “consumer reporting agencies.”
Most consumer reporting agencies (CRAs) are credit bureaus. The three major credit bureaus, Equifax, Experian and TransUnion, collect and sell your credit information to creditors, lenders, employers and landlords. This is information on your credit report and can include the information that determines your credit score such as your payment history and whether you have filed bankruptcy.
The FCRA provides specific federal protections:
Accuracy
You can dispute inaccurate information
If you discover and report inaccuracies on your credit report, the CRA is required to investigate your claims and present your evidence to the source that provided the information (e.g., a creditor, a bankruptcy court). If your claims are valid, the source must inform other CRAs of the mistake. You are entitled to a report of the investigation from the CRA.
Inaccurate information must be corrected
Once verified, the inaccurate data must be removed or corrected in 30 days. If your claims are unfounded, the CRA must notify you if they plan to reinsert the information and offer you contact information for the source of the information.
You can dispute inaccurate information with the source
Once the source of the inaccurate information is informed of your dispute, they cannot report the item to another CRA without including a notice of your dispute. Once your claim is verified and the source is informed in writing, they can no longer continue to report the inaccurate information.
Outdated information may not be reported
CRAs may not report negative information that is seven years old, or ten years old in the case of bankruptcy.
Fairness
You must be told when negative information is used against you
If you are denied an application for credit, an insurance policy or a job opportunity as a result of your credit information, you must be informed and provided with the name and contact information of the CRA that reported the information.
You can learn the contents of your file
The CRA is required to provide the information in your credit report, and a list of everyone who has recently requested your file, upon you request. Under the Fair and Accurate Credit Transaction Act (FACTA) you can review your credit report from each of the three major bureaus every 12 months free of charge. If your request is the result of negative information used against you, there is no charge if you request to see it within 60 days.
You can seek damages from violators
You can sue violators of the Fair Credit Reporting Act in state or federal court.
Privacy of Information
Access to your files is limited
Information in your credit report is limited to people with a recognized need, i.e., creditors, insurers, employers, landlords.
Your consent is required for some reports
The CRA must acquire your written consent before allowing an employer, or a prospective employer, obtain your information. Your permission is also required for releasing any files that include medical information.
You may opt out of unsolicited credit and insurance offers
Creditor and insurers may use your file information to send you unsolicited offers. Each offer must include an opt-out number so you can request to be left off of lists in the future.
FCRA is a federal law and ou may have additional rights under local state laws.
Learn more about the Fair Credit Reporting Act (FCPR):
i Debt Shield, Inc. is not a law firm and nothing contained herein shall be construed as legal advice. If you require legal advice, you should seek counsel of an attorney licensed in your jurisdiction.
ii Debt Shield, Inc. is not a credit repair organization and does not in any way provide services designed to dispute credit entries or improve one's credit rating.
