What Is the FCRA?
The Fair Credit Reporting Act is a federal law that regulates how credit bureaus collect, use, and share your credit information. Enacted in 1970 and updated several times, it provides consumers with important rights and protections.
Your Right to Access Your Credit Reports
You are entitled to one free credit report from each of the three major credit bureaus every 12 months through AnnualCreditReport.com. You also have the right to additional free reports if you have been denied credit, are unemployed, or are a victim of identity theft.
Your Right to Dispute Inaccurate Information
If you find errors on your credit report, you have the right to dispute them. Credit bureaus must investigate your dispute within 30 days and correct or remove inaccurate information. If the investigation does not resolve the dispute, you can add a statement to your credit report explaining your side.
Your Right to Know Who Has Accessed Your Credit
Your credit report includes a list of everyone who has accessed it in the past two years for most inquiries, or one year for employment-related inquiries. You have the right to know who is checking your credit and why.
Your Right to Opt Out
You can opt out of pre-screened credit and insurance offers by calling 1-888-5-OPT-OUT or visiting OptOutPrescreen.com. This reduces unwanted solicitations and potential identity theft risks.
Your Right to Security Freezes
You have the right to place a security freeze on your credit reports for free. A freeze prevents new creditors from accessing your credit report, making it nearly impossible for identity thieves to open accounts in your name.
Your Right to Fraud Alerts
If you suspect identity theft, you can place a fraud alert on your credit reports. This requires creditors to verify your identity before opening new accounts. Initial fraud alerts last one year, while extended alerts for confirmed identity theft victims last seven years.
Time Limits on Negative Information
The FCRA limits how long negative information can remain on your credit report. Most negative items must be removed after seven years, while bankruptcies can remain for up to ten years. Positive information can remain indefinitely.
Your Right to Sue for Violations
If a credit bureau, creditor, or other entity violates your FCRA rights, you have the right to sue for damages. You may be entitled to actual damages, punitive damages, and attorney fees.
How to Exercise Your Rights
Review your credit reports regularly. Dispute errors promptly in writing. Keep detailed records of all correspondence. Consider working with a credit repair professional who understands FCRA rights. Do not hesitate to file complaints with the CFPB if your rights are violated.