Fair Credit Reporting Act (FCRA)

What is the FCRA?

The Fair Credit Reporting Act (FCRA) is a federal law that regulates the collection, dissemination, and use of consumer credit information. Enacted in 1970 and amended several times since, the FCRA is designed to promote accuracy, fairness, and privacy of information in the files of consumer reporting agencies.

The FCRA gives you specific rights regarding your credit reports and how your credit information is used. Understanding these rights is essential for protecting your financial reputation and ensuring the accuracy of your credit information.

Your Rights Under the FCRA

1. Right to Access Your Credit Report

You have the right to obtain a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once every 12 months. You can request your free reports at:

You may also be entitled to additional free reports if:

• You are unemployed and plan to look for a job within 60 days
• You are on welfare
• Your report is inaccurate because of fraud, including identity theft
• You are denied credit, insurance, or employment based on your credit report

2. Right to Dispute Inaccurate Information

If you find information in your credit report that you believe is inaccurate or incomplete, you have the right to dispute it. The credit bureau must investigate your dispute (usually within 30 days) and correct or delete inaccurate, incomplete, or unverifiable information.

How to dispute:

• Contact the credit bureau in writing
• Clearly identify each item you dispute
• Explain why you dispute the information
• Include copies of documents that support your position
• Request that the inaccurate information be removed or corrected

3. Right to Know Who Has Accessed Your Report

Your credit report must list everyone who has accessed it within the past year (two years for employment purposes). This helps you monitor who is checking your credit and identify potential unauthorized access.

4. Right to Opt Out of Pre-Approved Offers

You can opt out of receiving pre-approved credit and insurance offers by calling 1-888-567-8688 or visiting www.optoutprescreen.com. You can choose to opt out for five years or permanently.

5. Right to Place a Security Freeze

You have the right to place a security freeze on your credit report for free. A security freeze restricts access to your credit report, making it more difficult for identity thieves to open new accounts in your name.

6. Right to Limit Information Sharing

You can limit the sharing of your credit information among affiliated companies and prevent credit bureaus from sharing your information for marketing purposes.

7. Right to Seek Damages

If a credit bureau, creditor, or other entity violates the FCRA, you may be able to sue them in state or federal court for damages, including actual damages, punitive damages, and attorney's fees.

Credit Bureau Responsibilities

Under the FCRA, credit bureaus must:

• Maintain reasonable procedures to ensure maximum possible accuracy of credit reports
• Investigate disputes within 30 days (45 days in some cases)
• Correct or delete inaccurate, incomplete, or unverifiable information
• Provide you with the results of their investigation
• Notify furnishers of information when items are disputed
• Remove most negative information after 7 years (10 years for bankruptcies)
• Provide free credit reports as required by law
• Obtain your consent before providing your report to employers

Creditor and Furnisher Responsibilities

Companies that furnish information to credit bureaus must:

• Provide accurate information to credit bureaus
• Investigate disputes forwarded by credit bureaus
• Correct and update inaccurate information
• Not report information they know or should know is inaccurate
• Notify credit bureaus when accounts are disputed by consumers
• Provide notice to consumers when negative information is reported

How Long Information Stays on Your Report

The FCRA limits how long negative information can remain on your credit report:

• Late payments: 7 years from the date of delinquency
• Charge-offs: 7 years from the date of first delinquency
• Collections: 7 years from the date of first delinquency
• Chapter 7 bankruptcy: 10 years from the filing date
• Chapter 13 bankruptcy: 7 years from the filing date
• Foreclosures: 7 years from the date of foreclosure
• Tax liens: 7 years from the date paid
• Hard inquiries: 2 years (but only affect your score for 1 year)

Positive information can remain on your report indefinitely.

Identity Theft Rights

If you are a victim of identity theft, the FCRA provides additional protections:

• You can place an extended fraud alert on your credit report for 7 years
• You are entitled to free copies of your credit reports
• You can request that fraudulent information be blocked from your credit report
• Creditors must provide you with copies of fraudulent applications
• Debt collectors cannot pursue debts resulting from identity theft

Steps to take if you are a victim of identity theft:

1. Place a fraud alert on your credit reports
2. Order your credit reports and review them carefully
3. File a report with the Federal Trade Commission at identitytheft.gov
4. File a police report
5. Contact companies where fraud occurred
6. Consider placing a security freeze on your credit reports

Filing a Complaint

If you believe your rights under the FCRA have been violated, you can file a complaint with:

You may also have the right to sue in state or federal court. Consider consulting with an attorney who specializes in consumer law.

Credit Bureau Contact Information

How We Can Help

While you have the right to dispute inaccurate information on your credit report yourself, the process can be time-consuming and complex. Our credit repair services can help you:

• Identify inaccurate, outdated, or unverifiable information on your credit reports
• Prepare and submit properly formatted disputes to credit bureaus
• Follow up on disputes and ensure they are properly investigated
• Communicate with creditors and collection agencies on your behalf
• Monitor your credit reports for changes and improvements
• Provide guidance on building and maintaining good credit

We work within the framework of the FCRA to help you exercise your rights and improve your credit profile. Our experienced team understands the law and knows how to effectively dispute inaccurate information.

Additional Resources

• FTC Consumer Information: www.consumer.ftc.gov/topics/credit-and-loans
• CFPB Credit Reports: www.consumerfinance.gov/consumer-tools/credit-reports-and-scores
• Annual Credit Report: www.annualcreditreport.com
• Identity Theft Resources: www.identitytheft.gov
• Opt Out Prescreen: www.optoutprescreen.com