The Fair Credit Reporting Act (FCRA) outlines your rights regarding consumer reports, including credit reports. While consumer credit reporting agencies (CRAs) can collect and sell information about you, they must respect the legal guidelines concerning accuracy, fairness and privacy.
Disclosure Under the FCRA
Originally implemented in 1970, the original FCRA has been amended several times. The Federal Trade Commission (FTC) and other agencies enforce the act. CRAs must give you free disclosure of your file once every twelve months, or anytime: • A person or business refuses a loan or takes other action because of your credit report • You place a fraud alert on your file because of identity theft • Your file is incorrect because of fraud • You're currently on public assistance • You're unemployed but plan to apply for work within the next 60 days.
CRAs and Their Clients
CRAs can sell your credit information only to parties the FTC defines as having a legitimate interest, such as lenders, insurers, landlords and employers. CRAs can't generally give your information to an employer without your written consent. No lender, insurance provider, employer or other party can refuse to give you a loan, provide coverage, hire you or deny an application based on your credit report without informing you. The business must tell you which CRA gave it the information and provide contact information for the CRA.
Your Rights Under the FCRA
You may buy a copy of your credit score from a CRA, or you can access a free credit report (without the score) from each of the three major CRA bureaus once every 12 months. If you point out inaccurate information on your credit report, the CRA is obligated to investigate and correct any verifiable mistakes in your credit report, generally within 30 days. CRAs generally can't report bankruptcy after 10 years, or negative information after seven. Companies providing prescreened offers based on your credit report must include a number you can call to remove your name from the list. You can sue under certain circumstances if a CRA, a business buying your information from a CRA or a business providing your information to a CRA violates the FCRA. Identity theft victims and military personnel have additional rights, and some states have additional consumer protection laws, which may give you further rights regarding your credit history.