Credit > Fair Credit Reporting Act |
The Fair Credit Reporting Act (FCRA) is designed to promote accuracy and ensure the privacy of the information used in consumer reports. Recent amendments to the Act expand your rights and place additional requirements on credit bureaus. Businesses that supply information about you to credit bureaus and those that use consumer reports also have new responsibilities under the law. Below are some questions consumers commonly ask about consumer reports and credit bureaus - and the answers. Q. How do I find the credit bureaus that has my report? The three major national credit bureaus are: Equifax 800-685-1111 www.equifax.com Experian 888-EXPERIAN (888-397-3742) www.experian.com Trans Union 800-916-8800 www.transunion.com Q. Do I have a right to know what's in my report? Yes, if you ask for it. The credit bureaus must tell you everything in your report, including medical information, and in most cases, the sources of the information. The credit bureaus also must give you a list of everyone who has requested your report within the past year - two years for employment related requests. Q. Is there a charge for my report? Sometimes. There's no charge 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 credit bureaus. In addition, you're entitled to one free report a year (1) you're unemployed and plan to look for a job within 60 days, (2) you're on welfare, or (3) your report is inaccurate because of fraud. Otherwise, a credit bureaus may charge you up to $9 for a copy of your report. There is a new law that allows consumers to get one free copy of their credit reports each year. Click here for details. Q. What can I do about inaccurate or incomplete information? Under the new law, both the credit bureaus 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 credit bureaus and the information provider. First, tell the credit bureaus in writing what information you believe is inaccurate. Credit bureaus must reinvestigate the items in question - usually within 30 days - unless they consider your dispute frivolous. They also must forward all relevant data you provide about the dispute to the information provider. After the information provider receives notice of a dispute from the credit bureaus, it must investigate, review all relevant information provided by the credit bureaus, and report the results to the credit bureaus. If the information provider finds the disputed information to be inaccurate, it must notify all nationwide credit bureaus 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 information provider verifies its accuracy and completeness, and the CRA gives you a written notice that includes the name, address, and phone number of the provider. Second, 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 you are correct - that is, if the information is inaccurate - the information provider may not use it again. Q. What can I do if the CRA or information provider won't correct the information I dispute? A reinvestigation may not resolve your dispute with the credit bureaus. If that's the case, ask the credit bureaus to include your statement of the dispute in your file and in future reports. If you request, the credit bureaus 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 credit bureaus. Q. Can my employer get my report or can a creditor or insurer get a report that contains medical information about me? Only if you say it's okay. A credit bureaus may not supply information about you to your employer, or to a prospective employer, without your consent. Q. What should I know about "investigative consumer reports"? "Investigative consumer reports" 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 credit bureaus. However, the CRA does not have to reveal the sources of the information. Q. How long can a CRA report negative information? Seven years. There are certain exceptions: (1) Information about criminal convictions may be reported without any time limitation. Bankruptcy information may be reported for 10 years; (2) Information reported in response to an application for a job with a salary of more than $75,000 has no time limit; (3) Information reported because of an application for more than $150,000 worth of credit or life insurance has no time limit; (4) Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. Q. Can anyone get a copy of my report? No. Only people with a legitimate business need, as recognized by the Fair Credit Reporting Act. For example, a company is allowed to get your report if you apply for credit, insurance, employment, or to rent an apartment. Q. How can I stop a CRA from including me on lists for unsolicited credit and insurance offers? Creditors and insurers may use credit bureaus file information as a basis for sending you unsolicited offers. These offers must include a toll-free number for you to call if you want to remove your name and address from lists for two years; completing a form that the credit bureaus provides for this purpose will keep your name off the lists permanently. Click here to opt out of credit offers. Q. Are there other laws I should know about? Yes. If your credit application was denied, the Equal Credit Opportunity Act (ECOA) requires creditors to specify why - if you ask. For example, the creditor must tell you whether you were denied because you have "no credit file" with a credit bureausor because the credit bureaus says you have "delinquent obligations." The ECOA also requires creditors to consider additional information you might supply about your credit history. You may want to find out why the creditor denied your application before you contact the credit bureaus. Q. Can I sue over negative information being reported to my credit file? A consumer can bring a civil action for willful noncompliance with the Fair Credit Reporting Act and receive actual damages or punitive damages up to $1,000 (Section 16). You may also sue for negligent noncompliance and recover actual damages sustained by you (Section 617). Attorney's fees, as determined by the court, will be allowed for both forms of action. More information about improving your credit score is in our credit kit. Credit Kit -- Improve credit rating and reduce monthly bills by $200+ Debt Kit -- Settle unsecured debts for less than half of amount owed |
The Fair Credit Reporting Act (FCRA) |
The Fair Credit Reporting Act (FCRA) is designed to promote accuracy and ensure the privacy of the information used in consumer reports. Recent amendments to the Act expand your rights and place additional requirements on credit bureaus. Businesses that supply information about you to credit bureaus and those that use consumer reports also have new responsibilities under the law. Below are some questions consumers commonly ask about consumer reports and credit bureaus - and the answers. Q. How do I find the credit bureaus that has my report? The three major national credit bureaus are: Equifax 800-685-1111 www.equifax.com Experian 888-EXPERIAN (888-397-3742) www.experian.com Trans Union 800-916-8800 www.transunion.com Q. Do I have a right to know what's in my report? Yes, if you ask for it. The credit bureaus must tell you everything in your report, including medical information, and in most cases, the sources of the information. The credit bureaus also must give you a list of everyone who has requested your report within the past year - two years for employment related requests. Q. Is there a charge for my report? Sometimes. There's no charge 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 credit bureaus. In addition, you're entitled to one free report a year (1) you're unemployed and plan to look for a job within 60 days, (2) you're on welfare, or (3) your report is inaccurate because of fraud. Otherwise, a credit bureaus may charge you up to $9 for a copy of your report. There is a new law that allows consumers to get one free copy of their credit reports each year. Click here for details. Q. What can I do about inaccurate or incomplete information? Under the new law, both the credit bureaus 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 credit bureaus and the information provider. First, tell the credit bureaus in writing what information you believe is inaccurate. Credit bureaus must reinvestigate the items in question - usually within 30 days - unless they consider your dispute frivolous. They also must forward all relevant data you provide about the dispute to the information provider. After the information provider receives notice of a dispute from the credit bureaus, it must investigate, review all relevant information provided by the credit bureaus, and report the results to the credit bureaus. If the information provider finds the disputed information to be inaccurate, it must notify all nationwide credit bureaus 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 information provider verifies its accuracy and completeness, and the CRA gives you a written notice that includes the name, address, and phone number of the provider. Second, 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 you are correct - that is, if the information is inaccurate - the information provider may not use it again. Q. What can I do if the CRA or information provider won't correct the information I dispute? A reinvestigation may not resolve your dispute with the credit bureaus. If that's the case, ask the credit bureaus to include your statement of the dispute in your file and in future reports. If you request, the credit bureaus 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 credit bureaus. Q. Can my employer get my report or can a creditor or insurer get a report that contains medical information about me? Only if you say it's okay. A credit bureaus may not supply information about you to your employer, or to a prospective employer, without your consent. Q. What should I know about "investigative consumer reports"? "Investigative consumer reports" 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 credit bureaus. However, the CRA does not have to reveal the sources of the information. Q. How long can a CRA report negative information? Seven years. There are certain exceptions: (1) Information about criminal convictions may be reported without any time limitation. Bankruptcy information may be reported for 10 years; (2) Information reported in response to an application for a job with a salary of more than $75,000 has no time limit; (3) Information reported because of an application for more than $150,000 worth of credit or life insurance has no time limit; (4) Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. Q. Can anyone get a copy of my report? No. Only people with a legitimate business need, as recognized by the Fair Credit Reporting Act. For example, a company is allowed to get your report if you apply for credit, insurance, employment, or to rent an apartment. Q. How can I stop a CRA from including me on lists for unsolicited credit and insurance offers? Creditors and insurers may use credit bureaus file information as a basis for sending you unsolicited offers. These offers must include a toll-free number for you to call if you want to remove your name and address from lists for two years; completing a form that the credit bureaus provides for this purpose will keep your name off the lists permanently. Click here to opt out of credit offers. Q. Are there other laws I should know about? Yes. If your credit application was denied, the Equal Credit Opportunity Act (ECOA) requires creditors to specify why - if you ask. For example, the creditor must tell you whether you were denied because you have "no credit file" with a credit bureausor because the credit bureaus says you have "delinquent obligations." The ECOA also requires creditors to consider additional information you might supply about your credit history. You may want to find out why the creditor denied your application before you contact the credit bureaus. Q. Can I sue over negative information being reported to my credit file? A consumer can bring a civil action for willful noncompliance with the Fair Credit Reporting Act and receive actual damages or punitive damages up to $1,000 (Section 16). You may also sue for negligent noncompliance and recover actual damages sustained by you (Section 617). Attorney's fees, as determined by the court, will be allowed for both forms of action. More information about improving your credit score is in our credit kit. Credit Kit -- Improve credit rating and reduce monthly bills by $200+ Debt Kit -- Settle unsecured debts for less than half of amount owed |
Credit > Fair Credit Reporting Act |
