Fair Credit Reporting Act Procedures

The Fair Credit Reporting Act (FCRA), enforced through the Federal Trade Commission (FTC), assures Americans a number of credit-reporting rights. These laws ensure privacy rights, rights to access your own credit reports, and specify that only accurate information about your credit history is reported.

Privacy Rights

Under the FCRA, people and companies can only view your credit report if they have a "permissible purpose." Acceptable reasons include debt-collection purposes, employment qualification, rental-application screening or an application for a credit card, loan or increased privileges on an existing account. If you currently have a credit card or loan, the lender has the right to view your credit history at any time.

Viewing Your Files

The FCRA allows you to view your own credit reports, but the credit reporting agency can demand you prove your identity first and can charge copying and research fees. If you were recently denied credit or employment, or suspect you might be a victim of identity theft, then you can usually get a free copy of your credit report.

Reporting Time Frames

FCRA guidelines manage just how long negative or positive credit information can be reflected on your credit reports. As of 2011, most negative credit events such as late or missed payments or Chapter 13 bankruptcies can only be included on your report for up to seven years from the date of the event. Some types of credit problems, such as Chapter 7 bankruptcies, unpaid lawsuits and tax liens, are legally reportable for 10 years from the date of the event. Closed accounts that were always paid on time usually reflect on your credit reports for at least 10 years.

Dealing With Inaccuracies

The FCRA protects consumers against inaccurately reported information, whether the error is the result of identity theft or creditor error. When consumers request in writing or by telephone that the credit reporting agency investigate the error, the agency has 30 days from the receipt of the request to either prove the information is correct or to delete it from the consumer's credit report. Failure to promptly investigate such situations can lead to fines against the agency.