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The Fair Credit
Reporting Act (FCRA) is designed to promote fairness, accuracy and privacy
of information in the files kept by each Consumer Reporting Agency (CRA).
The three main CRAs are the credit bureaus Equifax, Experian and Transunion.
These bureaus gather information about you such as your past and present
addresses, your phone number, your social security number, credit accounts,
credit limits and loans. They also have records indicating prior arrests,
lawsuits, bankruptcies and divorces. The CRAs sell that information to
potential creditors, employers and other businesses. The FCRA gives you
specific rights in dealing with the CRAs, and requires them to provide you
with a summary of these rights as listed below. You can find the complete
text of the FCRA, 15 U.S.C, 1681 et seq. at the Federal Trade Commission's
web site (http://www.ftc.gov).
You must be told if information in your file has been used against you.
Anyone who uses information from a CRA to take action against you -- such as
denying an application for credit, insurance, or employment -- must give you
the name, address, and phone number of the CRA that provided the report.
You can find out what is in your file. A CRA must give you all the
information in your file, and a list of everyone who has requested it
recently. However, you are not entitled to a "risk score" or a "credit
score" that is based on information in your file. There is no charge for the
report if your application was denied because of information supplied by the
CRA, and if you request the report within 60 days of receiving the denial
notice. You are also entitled to one free report a year if you certify that
(1) you are unemployed and plan to seek employment within 60 days, (2) you
are on welfare, or (3) your report is inaccurate due to fraud. Otherwise, a
CRA may charge you a fee of up to eight dollars.
You can dispute inaccurate information with the CRA. If you tell a
CRA that your file contains inaccurate information, the CRA must
reinvestigate the items (usually within 30 days) unless your dispute is
frivolous. The CRA must pass along to its source all relevant information
you provided. The CRA also must supply you with written results of the
investigation and a copy of your report, if it has changed. If an item is
altered or deleted because you dispute it, the CRA cannot place it back in
your file unless the source of the information verifies its accuracy and
completeness, and the CRA provides you a written notice that includes the
name, address and phone number of the source.
Inaccurate information must be deleted. A CRA must remove inaccurate
information from its files, usually within 30 days after you dispute its
accuracy. The largest credit bureaus must notify other national CRAs if
items are altered or deleted, However, the CRA is not required to remove
data from your file that is accurate unless it is outdated or cannot be
verified.
You can dispute inaccurate items with the source of the information.
If you tell anyone -- such as a creditor who reports to a CRA -- that you
dispute an item, they may not then report the information to a CRA without
including a notice of your dispute. In addition, once you've notified the
source of the error in writing, they may not continue to report it if it is
in fact an error. Outdated information may not be reported. In most cases, a
CRA may not report negative information that is more than seven years old;
ten years for bankruptcies.
Access to your file is limited. A CRA may provide information about
you only to those who have a need recognized by the FCRA -- usually to
consider an application you have submitted to a creditor, insurer, employer,
landlord, or other business. · Your consent is required for reports that are
provided to employers or that contain medical information. A CRA may not
report to your employer, or prospective employer, about you without your
written consent. A CRA may not divulge medical information about you without
your permission.
You can stop a CRA from including you on lists for unsolicited credit and
insurance offers. Creditors and insurers may use file information as the
basis for sending you unsolicited offers of credit or insurance. Such offers
must include a toll-free number for you to call and tell the CRA if you want
your name and address excluded from future lists or offers. If you notify
the CRA through the toll-free number, it must keep you off the lists for two
years. If you request and complete the CRA form provided for this purpose,
you can have your name and address removed indefinitely.
You may seek damages from violators. You may sue a CRA or other party
in state or federal court for violations of the FCRA - If you win, the
defendant may have to pay damages and reimburse you for attorney fees. If
you lose and the court specifically finds you sued in bad faith, you or your
attorney may have to pay the defendant's fees.
You may have additional rights under state law. You may wish to
contact a state or local consumer protection agency or a State attorney
general to learn those rights. If you have questions or believe your file
contains errors, Contact Us, and
we'll be happy to help.
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