Fair Credit Reporting Act (FCRA)
Credit Reporting Laws
The Fair Credit Reporting Act (FCRA) was passed in 1970 to regulate the collection and use of consumer credit information. Under FCRA guidelines, the Credit Reporting Agency (CRA) must tell you everything in your report, including (in most cases) the sources of the information. The CRA must also give you a list of everyone who has requested your report within the past year (two years for employment-related requests). Everyone is entitled to one free credit report a year. There is never a charge for the report if a company takes adverse action against you, such as denying your application for credit, insurance or employment, and you request your report within 60 days of receiving the notice of the action. The notice will give you the name, address, and phone number of the CRA. In addition, you may be entitled to an extra free report if you're unemployed and plan to look for a job within 60 days, you're on welfare, or your report is inaccurate because of fraud.
Correcting inaccurate or incomplete information: Both the CRA and the information provider have responsibilities for correcting inaccurate or incomplete information in your report. To protect all your rights under this law, contact both the CRA and the information provider. First, inform the CRA in writing about the information you believe is inaccurate. The CRA must reinvestigate the items in question - usually within 30 days - unless they consider your dispute frivolous. They must also forward all relevant data you provide about the dispute to the information provider.
After the information provider receives notice of a dispute from the CRA, it must investigate and review all relevant information provided by the CRA and report the results back to the CRA. If the information provider finds the disputed information to be inaccurate, it must notify all nationwide CRAs so that they can correct this information in your file. When the reinvestigation is complete, the CRA must give you the written results and a free copy of your report if the dispute results in a change.
If an item is changed or removed, the CRA cannot put the disputed information back in your file unless the creditor verifies its accuracy and completeness and the CRA gives you a written notice that includes the name, address, and phone number of the creditor. Next, tell the creditor or other information provider in writing that you dispute an item. Many providers specify an address for disputes. If the provider then reports the item to any CRA, it must include a notice of your dispute. In addition, if the information is inaccurate, the information provider may not use it again.
If the CRA will not correct your report: Ask them to include your statement of the dispute in your file and in future reports. At your request, the CRA also will provide your statement to anyone who received a copy of the old report in the recent past. There usually is a fee for this service. If you tell the information provider that you dispute an item, a notice of your dispute must be included anytime the information provider reports the item to a CRA.
Investigative Consumer Reports: These are detailed reports that involve interviews with your neighbors or acquaintances about your lifestyle, character, and reputation. They may be used in connection with insurance and employment applications. You'll be notified in writing when a company orders such a report. The notice will explain your right to request certain information about the report from the company you applied to. If your application is rejected, you may get additional information from the CRA. However, the CRA does not have to reveal the sources of the information.
How long can a CRA report contain derogatory information? Seven years. But there are certain exceptions. Information about criminal convictions may be reported without any time limitation. Bankruptcy information may be reported for 10 years. Information reported in response to an application for a job with a salary of more than $75,000 has no time limit. Information reported as a result of an application for credit that exceeds $150,000 or life insurance has no time limit. Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations run out, whichever is longer.
Can creditors, employers, or insurers get a report that contains medical information about me?
Not without your approval.
Can anyone get a copy of my report? No. Only people with a legitimate business need, as recognized by the FCRA, can request your report. For example, a company is allowed to get your report if you apply for credit, insurance, employment, or to rent an apartment.
Consult the Law Office of Michael P. Forbes, Esquire, a Philadelphia debt collection abuse attorney if you believe
your rights have been violated under FCRA statutes.
Consumer reporting agencies have various responsibilities under the FCRA, including:
- Providing credit information contained in the CRA database to the consumer as requested
- Keeping negative consumer credit information for extended periods of time
- Verifying any information that is disputed
- Notifying the customer when any negative information is reinstated
- A CRA may not supply information about you to your employer, or to a prospective employer, without your consent.
Protect Your Consumer Rights
My name is Michael Forbes and I can provide reliable advice regarding FCRA statutes and reporting procedures. I am well versed in debt collection and reporting laws, and have helped many clients with FCRA issues over the years. Call my law office for more information regarding credit reporting, and to find out your legal options if a consumer reporting agency has violated FCRA laws.