Federal Fair Credit Reporting Act

The Federal Fair Credit Reporting Act (FCRA) was put together to encourage justice, accuracy, and confidentiality of the data in every CRA or consumer reporting agency’s files. In order to take advantage of the assistance this act provides, you should order a copy of your credit report at least one time a year. Also, take the time to do research on the Federal Fair Credit Reporting Act and know what your rights are. Doing this will help you protect you and your family’s privacy. 

The FCRA and other state legislature put restrictions on who has the ability to view your credit information and what they can use it for. The Federal Fair Credit Reporting Act promotes the proper use of the information in Consumer Reporting Agency files or (CRA). Consumer Reporting Agencies are groups that gather and disburse information about each consumer mostly for purposes of credit assessment. The reports that these agencies provide include information on a consumer’s bank accounts, mortgages, loans and credit cards. Consumer Reporting Agencies have responsibilities that they need to follow now that the Federal Fair Credit Reporting Act has been passed. For instance, they are required to provide every consumer with the information they have about them in their files and must take the proper precautions to follow up on reports and complaints from the consumer of faulty information listed in their reports. Consumers are also now allowed to receive a free copy of their credit report every year if they request one. This will enable each consumer to keep up with faulty or negative information that may appear on their reports.

Another action that the Federal Fair Credit Reporting Act promotes is the allotment for an amount of time that negative information can remain on a consumer’s credit report, such as bankruptcies, late payments, various judgments or even tax liens. The typical amount of time allotted is seven years. Another thing that the CRA’s must do under the FCRA is notify a person about any negative reporting which has already been or will be recorded on that person’s credit report and they must do so within 30 days. The CRA’s are also not allowed to report any negative information that is outdated or has been previously removed as the result of a person’s dispute. In order to reinstate past negative information on a consumer’s report that has already been disputed, they must let the consumer know in writing within a five day period. Conversely, the CRA’s are not required to eliminate accurate information from your credit report unless it is not verifiable or is outdated (as stated above). Your approval is required for credit reports that are given to various employers and also for reports that have confidential medical information contained in them.

Since its creation, the Federal Fair Credit Reporting Act has allowed for easier and less complicated access to credit reports for consumers who want to keep track of discrepancies on their reports. It also gives the consumer the ability to dispute items in a straightforward and simple way. The FCRA was created for the consumer as a means to prevent deceptive, fraudulent and unjust business practices in the financial marketplace. It gives the consumer the information they need to improve their credit and their lives.