The information contained in your credit report can potentially determine whether you're able to borrow money for a home loan or new car, get utility or cell phone services or even land a job and it's your right to know what's being reported by the credit bureaus. The Fair Credit Reporting Act, FCRA, is designed to ensure the accuracy of information contained in your credit report and provide you with certain protections against unfair reporting practices.
Function
The function of the FCRA is to provide consumers with protections regarding the accuracy and privacy of information contained in their credit file. The FCRA applies to the three major credit reporting bureaus, Equifax, Experian and TransUnion, as well as smaller credit reporting bureaus, including agencies that furnish information for medical collections or employer background checks.
Disclosure
Under theFCRA, you have the right to know what information is contained in your credit report and to be notified if you have been denied credit, insurance or employment. The FCRA also provides that if you are denied credit, you are entitled to a free copy of your credit report from the agency that furnished the information. You may also request a credit score from any credit reporting agency that distributes them, but you will have to pay a fee for this service.
Disputing Errors
In the event that your credit report contains inaccurate or erroneous information, you have the right to dispute these errors with the credit bureau that reported the information. The FCRA provides that the credit bureau investigate your claim and correct or delete any inaccurate information within thirty days. The FCRA also prohibits credit reporting agencies from reporting outdated information negative information that is more than seven years old or 10 years old in the case of bankruptcy.
Access
The FCRA also dictates who can access your credit file. A credit reporting agency is only allowed to furnish your information to individuals or entities who have a valid reason for requesting it, such as a lender, landlord or potential employer. The FCRA also provides that employers cannot access your credit file without your express written consent. You may also opt-out of prescreened offers for credit or insurance that are based on information in your credit file.
Violations
If you believe your rights have been violated by a credit reporting agency, the FCRA provides you with the legal right to seek damages by filing a civil lawsuit in state or federal court. Depending on the type of violation, you may receive up to $1,000 in damages if you can prove that a violation has occurred.
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