Federal Fair Credit Reporting Act

Federal fair credit reporting act(FCRA) is a federal law which outlines out how the credit information of a customer can be canceled, issued out and also used. Under this act, the consumers have an obligation to view their credit file information and can file a dispute in case they find any inaccurate information. All consumers are advised to be aware of their rights so that they can prevent themselves from being taken for granted by the credit reporting industries.

Rules for consumer reporting companies under FCRA

FCRA defines the consumer reporting agencies as companies which correct credit information about the consumers with the main aim of selling that information to third parties. Under FCRA, the credit bureaus and other consumer reporting agencies are expected to.

i) Offer you, the copy of your credit file once you’ve requested for it.
In this case, you must give your personal information which will identify you so that the credit bureau will be sure that you’re the right person that’s requesting the credit report. However, there’re some cases where the credit bureaus can offer you with a free copy of your credit report such as:

Annually, through a centralized website
When a business has taken adverse action due to the information on your credit report.
You’re on welfare
You’ve been previously been a victim of identity theft
When your credit report has inaccurate information which has resulted in identity theft.

ii) Investigate information that you’re disputing
This can happen when you do not offer the bureau with enough information which can assist you to investigate your dispute.

iii) Delete or correct inaccurate information within one month of your dispute in case you send additional information after you’ve submitted your written dispute.

iv) Delete any outdated or negative information

When your information is more than 7 to 10 years old it may become outdated, therefore must be deleted so that new one can be updated( this depends on the types of information since personal information cannot change easily)

v) They can also limit access to your credit report file to only business which has a permissible agenda for viewing it.

vi) Giving your credit report to the other employers only when you’ve given then a written and signed consent.

vii) Offer you a chance to opt-out of any prescreened credit report offers.

Requirements that business which uses your credit report information must meets

Companies can get a request to view your credit report information, in case they have a permissible purpose such as to give you credit for the application that you’ve submitted. The FCRA expects such companies to do the following:

Give you the address and name of the credit bureau which offered the credit report which was used in decision making

Inform you when your credit has been turned down due to the information of your credit report.
Under FCRA, you can request for compensation from a business which violates your rights.