What is the Fair Credit Reporting Act?
The Fair Credit Reporting Act is a law passed by Congress
that is designed to promote accuracy and ensure the privacy
of the information used in consumer reports. The Federal
Trade Commission enforces it. It is especially invaluable
in cases of identity theft
and credit repair.
Below are some commonly asked questions and answers about
the Fair Credit Reporting Act:
Q: Does the Fair Credit Report Act let me know what
the credit bureaus know about me?
A: Yes. If you contact any of the 3 credit
bureaus they will tell you what's in your report.
You are entitled to one free report a year and a free
copy every time you are declined for credit.
Q: Can they charge me for my report?
A: Sometimes. If you just want to have a look at your
credit report, then you have to pay for it. But if you
are denied for credit, insurance or employment, and you
request your report within 60 days, it is free. This is
required under the Fair Credit Reporting Act.
Q: What does the Fair Credit Reporting Act say I can
do about inaccurate or incomplete information?
A: Under the Fair Credit Reporting Act, there is a process
you must follow when disputing information.
- Tell the credit bureau in writing that you dispute
the information. You have to provide any supporting
documentation that you might have.
- The agency will investigate (wait at least 30 days)
- Then the credit bureau will give you written notice
of the results and a free credit report.
- If the information was inaccurate, they they'll
remove it from your report.
Disputing incorrect is the first step in most case where
credit repair is necessary
or when you are a victim of identity
theft.
Q: But what if the credit bureau says the incorrect
information is accurate?
A: Reinvestigation is not always going to solve your problem.
If the creditor says the information is correct, most
likely the credit bureau will believe them. The best you
can do is:
- Ask the credit bureau to file a statement that you
dispute the charge
- Contact your creditor directly and resolve the issue
with the m first, and then ask the credit bureau for
another investigation.
Under the Fair Credit Reporting Act 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 credit bureau.
Q: They say the information is correct, but I did
not take out the credit card. What does the Fair Credit
Reporting Act let me do?
A: It seems that you were a victim of identity
theft, a growing crime in this country. The Fair Credit
Reporting Act gives you a lot of ways to prevent the crime.
You can place fraud alerts on your account. And you are
also protected from having to pay debts in which you are
a victim. But this will require some time and effort on
your part. You will also be asked to sign sworn affidavits
claiming that you did not in fact take out the credit
card or other loan in question.
Q: How long can a credit bureau report negative information?
A: The Fair Credit Reporting Act allows for 7 years, with
the following exceptions:
- Criminal convictions--no time limit
- Bankruptcy--10 years
- Job application for a $75,000 or more job-no time
limit
- Insurance application of more than $150,000-no time
limit
- Unpaid judgments--7 years or when the statute of
limitations runs out, whichever is longer.
Q: Can anyone get a copy of my report?
A: No. Only those that the Fair Credit Reporting Act deems
has a legitimate need can get it. For example, an insurance
company when you apply for insurance can get it, but not
the guy at the car wash.
Q: Can I stop a credit bureau from including me on
lists for unsolicited credit and insurance offers?
A: Yes. The Fair Credit Reporting Act is there to protect
your privacy. Creditors and insurers may use information
from your credit report to send you unsolicited offers.
But these offers have to have a toll-free numbers that
let you opt-out.
Q: Can I sue for damages?
A: You sure can! If a credit bureau violates the Fair
Credit Reporting Act, you can sue them. . If you win,
the defendant will have to pay damages and reimburse you
for attorney fees. But it must be for a violation of the
Fair Credit Reporting Act, not because of inaccurate information.
Q: Who should I contact if there are violations of
the law?
A: You can send the FTC information about your experiences
and concerns as it related to the Fair Credit Reporting
Act. Send your questions or complaints to:
- Consumer Response Center - Fair Credit Reporting
Act
- Federal Trade Commission, Washington, DC 20580.
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