Definition
The Fair Credit Reporting Act (FCRA) is a federal law enacted in 1970 that governs how credit reporting agencies collect, access, and use consumers' credit information. It's designed to promote accuracy, fairness, and privacy of information in consumer credit reports. The FCRA gives consumers specific rights, including the right to access their credit reports, dispute inaccuracies, and limit who can access their credit information. It also requires credit bureaus to remove negative information after certain time periods and obligates creditors and other information providers to report accurate information to credit bureaus. The FCRA is enforced by the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB).
Frequently Asked Questions
What rights does the FCRA give consumers?
The FCRA gives consumers the right to: 1) Access their credit reports; 2) Dispute inaccurate information; 3) Have inaccurate information corrected or removed; 4) Restrict who can access their credit information; 5) Be informed if information in their report has been used against them; 6) Seek damages from violators; and 7) Have outdated negative information removed.
How long can negative information stay on my credit report under the FCRA?
Most negative information can remain on your credit report for 7 years, including late payments, collections, and charge-offs. Chapter 13 bankruptcies stay for 7 years, while Chapter 7 bankruptcies can remain for 10 years. Certain public records like unpaid tax liens can remain indefinitely.
Can anyone access my credit report?
No, the FCRA limits who can access your credit report. Generally, access is restricted to entities with a 'permissible purpose,' such as creditors evaluating applications, landlords, insurers, employers (with written consent), and government agencies with court orders or subpoenas.
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