The Fair Credit Reporting Act was enacted to protect consumers against fraudulent or inaccurate information from being placed in their credit file, as well as protecting their right to privacy. Information about your credit history is gathered by organizations known as Credit Reporting Agencies (CRAs) who sell the information to parties that have a legitimate interest in obtaining it. CRAs must follow certain procedures regarding the handling of credit information, and you as a consumer are also entitled to certain rights.
Access to Your File
You have the right to see what information is contained in your credit file upon your request as well as being notified of anyone who has requested information from it. You are also entitled to receive one free credit report per year if you are unemployed, on welfare, or if your report contains fraudulent information; otherwise, an eight dollar fee applies. Only those who have a legitimate reason may gain access to your report, such as a potential employer, a creditor, or insurance company to which you have applied for coverage.
Right to Know Adverse Information
If negative information in your file has been used against you, such as your being turned down for a loan or being denied employment, you must be notified by the party that this is the case. These parties are only entitled to access your report if you give them written consent, such as signing the disclosure form on a job application.
Right to Dispute Inaccuracies.
If your credit report contains inaccurate information, you can dispute the report by submitting any pertinent documentation to the CRA, who must begin an investigation within 30 days. The provider of the information must then report back to the CRA. If the CRA finds that the information is inaccurate, the it must remove it from your report or correct it within 30 days. You can also dispute the information with the provider, who then is not permitted to report information to the CRA without notifying it of your dispute.
Statute of Limitations
In most cases, adverse information in the credit report must be removed after seven years. Information concerning a bankruptcy must be removed after ten years.
Unsolicited Offers
If a potential creditor sends you a mail solicitation based on information in your credit file, it must include a toll free telephone number on the solicitation that allows you to call and request that you receive no further mailings. This will prevent the creditor from sending you additional solicitations for two years.
Right to Sue
In information has been used against you in a manner that violates the Fair Credit Reporting Act, you have the right to sue the party in federal or state court.
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