The Fair Credit Reporting Act (FCRA) is a United States federal law (codified at 15 U.S.C. § 1681 et seq.) that is enforced by the Federal Trade Commission and the act regulates the collection, dissemination, and use of consumer information, including consumer credit information.
If you've ever applied for a credit card or charge account, then most likely there is a credit file about you. This credit file contains information on where you work and live, how you pay your bills, whether or not you have ever been sued, have had judgements or liens againts you, if you've ever been arrested or if you have ever filed for reorganization or filed for bankruptcy.
The companies that gather and sell this information are called Consumer Reporting Agencies (CRAs). The most common types of CRA are the three major credit bureaus. The CRAs sell this information about you to creditors, employers and other businesses The information about you that they sell is called a consumer report.
The Fair Credit Reporting Act (FCRA) was put in place to promote the accuracy and ensure the privacy of the information used in consumer reports.
The Act helps consumers exercise their rights and places stringent requirements on CRAs. Businesses that supply information about you to CRAs and those that use consumer reports also have new responsibilities under the law.
Below are some common questions and answers about a consumers rights pertaining specifically to consumer reports and Credit Reporting agencies. These FAQ's are by no means exhaustive and you may have additional rights under state laws that are not covered in these FAQ's. Should you have further questions, you should contact your state Attorney General or local consumer protection agency for more information.
Q. What are the three major Credit Reporting Agencies?
A. There are thre major credit agencies and they all may have a credit file on you, Understand that each agency will most likely have different information about you and that they may not nbe consistent between each other. That is why you should always check your credit reports with all three when looking for discrepancies.
The three major national credit bureaus are:
•Equifax
P.O. Box 740241
Atlanta, GA 30374-0241
(800) 685-1111.
•Experian
P.O. Box 2104
Allen, TX 75013
(888) EXPERIAN (888-397-3742).
•Trans Union
P.O. Box 1000
Chester, PA 19022
(800) 916-8800.
In addition, anyone who takes action against you in response to a report supplied by a CRA -- such as denying your application for credit, insurance, or employment -- must give you the name, address, and telephone number of the CRA that provided the report.
Q. Do I have a right to know what's in my report?
A. Yes, consumers have the right to know what is listed in their reports but you have to ask for it. The Credit Reporting Agencies must tell you everything in your reports and the sources of the information. The Credit Reporting Agencies must also give you a list of everyone who has requested your report within the past year (two years for employment related requests.)
Q. Is there a charge for my report?
A. Consumers are allowed ro get a free copy of their report once a year. (every 12 months) There is also no charge if a creditor denies your application for credit if you request your report within 60 days of receiving the notice of the action. The notice will give you the name, address, and phone number of the CRA. In addition, you're entitled to a free report if you are unemployed and plan to look for a job within 60 days, are on welfare or if your report is inaccurate due to fraud. You can also pay for and obtain a copy of your credit reports directly from the CRA for a fee. There are also many third parties available online where you can obtain your credit reports for a fee. The best is probably MyFico.com becasue they are the only third party company which supplies you with your actual Fico score as opposed to a Fako.
Q. What can I do about inaccurate or incomplete information?
A. You can of course dispute the items yourself directly with the CRA's or you could hire a credit fix company. See a complete list of the best credit repair companies. Under the new laws, both the Credit reporting agencies and the information providers (creditors) have responsibilities for correcting inaccurate or incomplete information on your credit reports. The Fair Credit Reporting Act was created To protect the consumers rights under this law. If you have any inaccuracies or incomplete information, you should contact both the Credit reporting agencies and the information providers when disputing.
Simply tell the CRA in writing what information you believe is inaccurate. CRAs must reinvestigate the items in question within 30 days unless they consider your dispute frivolous. They also must forward all relevant data you provide about the dispute to the information provider (creditor). After the information provider receives notice of a dispute from the CRA, it must investigate, review all relevant information provided by the CRA, and report the results to the CRA. If the information provider finds the disputed information to be inaccurate, it must notify all nationwide CRAs so that they can update and correct this information in your credit file.
When the reinvestigation is complete, the credit reporting agencies must send you the written results and a free copy of your credit report if the dispute resulted in a change. If an item is changed or removed, the CRA cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness, and the CRA gives you a written notice that includes the name, address, and phone number of the provider.
You should also contact the creditor or other information provider in writing that you dispute an item. Many providers specify an address for disputes. If the provider then reports the item to any CRA, it must include a notice of your dispute. In addition, if you are correct and the information is inaccurate, the information provider may not use it again.
Q. What can I do if the CRA or information provider won't correct the information I dispute?
A. You should immediatelty file another dispute. Sometimes it might take three or four re-disputes to have an item removed. If after three or four tries and the reinvestigations did not resolve your dispute with the CRA you can consider hiring an attorney that specializes in consumer debt and CRA law. They can sue the collection agencies when they break the law and obtain monetary awards for clients. If the item was due to your own fault and you feel that the CRA's wont budge, you can ask the CRA to include a statement of the dispute in your file and in future reports. If you request, the CRA also will provide your statement to anyone who received a copy of the old report in the recent past. There sometimes a fee for this service.
If you tell the information provider that you dispute an item, a notice of your dispute must be included anytime the information provider reports the item to a CRA.
Q. Can my employer pull my credit reports?
A. Only if they notify you of their intention to do so andyou give them permission. A CRA may not supply information about you to your employer, or to a prospective employer, without your consent.
Q. Can creditors, employers, or insurers get a report that contains medical information about me?
A. Not without your approval.
Q. What are "investigative consumer reports"?
A. "Investigative consumer reports" are detailed reports that involve interviews with your neighbors or acquaintances about your lifestyle, character, and reputation. They may be used in connection with insurance and employment applications. You'll be notified in writing when a company orders such a report. The notice will explain your right to request certain information about the report from the company you applied to. If your application is rejected, you may get additional information from the CRA. However, the CRA does not have to reveal the sources of the information.
Q. How long can a CRA report negative information?
A. In general, seven years. There are a few exceptions:
•Information about criminal convictions may be reported without any time limitation.
•Bankruptcy information may be reported for 10 years.
•Tax liens can remain for up to 10 years
•Bankruptcy information may be reported for 10 years.
•Information reported in response to an application for a job with a salary of more than $75,000 has no time limit.
•Information reported because of an application for more than $150,000 worth of credit or life insurance has no time limit.
•Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer.
Q. Can anyone get a copy of my report?
A. No. Only people with a legitimate business need, as recognized by the FCRA. For example, a company is allowed to get your report if you apply for credit, insurance, employment, or to rent an apartment.
Q. How can I stop a CRA from including me on lists for unsolicited credit and insurance offers?
A. Creditors and insurers may use CRA file information as a basis for sending you unsolicited offers. These offers must include a toll-free number for you to call if you want to remove your name and address from lists for two years; completing a form that the CRA provides for this purpose will keep your name off the lists permanently.
Q. Do I have the right to sue for damages?
A. Yes you may sue a Credit reporting agency, a user or a provider of CRA data, in state or federal court for most violations of the FCRA. If you win, the defendant will have to pay damages and reimburse you for attorney fees to the extent ordered by the court.
Q. Are there other laws I should know about?
A. Yes. If your credit application was denied, the Equal Credit Opportunity Act requires creditors to specify why but only if you ask. The creditor must tell you the reason you were denied (which could be because you have "no credit file" with a CRA or because the CRA says you have "delinquent obligations.") The ECOA also requires creditors to consider additional information you might supply about your credit history. You may want to find out why the creditor denied your application before you contact the CRA.
Q. Where should I report violations of the law?
A. Although the FTC can't act as your lawyer in private disputes, information about your experiences and concerns is vital to the enforcement of the Fair Credit Reporting Act. Send your questions or complaints to:
Consumer Response Center -- FCRA
Federal Trade Commission
Washington, D.C. 20580.
For More Information
The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint or get free information on consumer issues, call toll-free, 1-877-FTC-HELP (1-877-382-4357), or use the complaint form at www.ftc.gov. The FTC enters Internet, telemarketing, identity theft and other fraud related complaints into Consumer Sentinel Network, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
Federal Trade Commission
Bureau of Consumer Protection
Office of Consumer and Business Education
Q. Where can I find a copy of the FCRA?
As a public service, the staff of the Federal Trade Commission (FTC) has prepared the following complete text of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq. Although staff generally followed the format of the U.S. Code as published by the Government Printing Office, the format of this text does differ in minor ways from the Code (and from West’s U.S. Code Annotated).
See more related links from the FTC website
Fair Credit reporting Act (FCRA) FAQ's
Other helpful links of interest
