The Fair Credit Reporting Act (FCRA) is a federal law that regulates the collection of consumers’ credit information and access to their credit reports. It was passed in 1970 to address the fairness, accuracy, and privacy of the personal information contained in the files of the credit reporting agencies.

How the Fair Credit Reporting Act (FCRA) Works

The Fair Credit Reporting Act is the primary federal law that governs the collection and reporting of credit information about consumers. Its rules cover how a consumer’s credit information is obtained, how long it is kept, and how it is shared with others—including the consumers themselves. The Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) are the two federal agencies charged with overseeing and enforcing the provisions of the act. Many states also have their own laws relating to credit reporting. The act in its entirety can be found in United States Code Title 15, Section 1681.

Common violations of the FCRA include:

  • Old information furnished as new information. Failure to update reports after completion of bankruptcy is just one example. Agencies might also report old debts as new and report a financial account as active when it was closed by the consumer.
  • Creditors give reporting agencies inaccurate financial information about you.
  • Reporting agencies mixing up one person’s information with another’s because of similar (or same) last name or social security number.
  • Agencies fail to follow guidelines for handling disputes.
  • Pulling your report for an impermissible purpose. For instance, viewing a credit report to determine if you have assets before filing certain kinds of lawsuits.
  • Failing to send you notifications about your credit report or score is one of the fair credit acts violations.
  • Reporting agencies providing information to unauthorized persons or businesses is one of the fair credits acts violations.  

If a Credit Reporting Agency or Debt Collection Agency is in violation of any of these rights, you have a right to sue them and get compensation. Call a qualified lawyer on (877) 700-5790. 

Your rights under the FCRA.

  • You must be told if information in your file has been used against you. Anyone who uses a credit report or another type of consumer report to deny your application for credit, insurance, or employment – or to take another adverse action against you – must tell you, and must give you the name, address, and phone number of the agency that provided the information. 
  • You have the right to know what is in your file. You may request and obtain all the information about you in the files of a consumer reporting agency (your “file disclosure”). You will be required to provide proper identification, which may include your Social Security number to avoid fair credit acts violations.
  • You have the right to ask for your credit score. Credit scores are numerical summaries of your credit-worthiness based on information from credit bureaus. You may request a credit score from consumer reporting agencies that create scores or distribute scores used in residential real property loans, but you will have to pay for it. In some mortgage transactions, you will receive credit score information for free from the mortgage lender.

Debt collection Agencies, Creditors, and Credit Reporting Agencies must respect your rights according to federal law. If you suspect that your rights are being violated, reach out to us on (877) 700-5790 or fill the form above and we will contact you within 24 hours.