What It Means
The Fair Credit Reporting Act (FCRA) is a federal law enacted in 1970 that governs how consumer credit information is collected, used, and shared. Key protections include: the right to access your credit report for free annually, the right to dispute inaccurate information, limits on who can access your credit report and for what purposes, requirements for how long negative information can be reported, and obligations for companies that report credit data to ensure accuracy. The FCRA also requires credit bureaus to investigate disputes within 30 days and remove any information they cannot verify. Violations of the FCRA can result in lawsuits, with consumers able to recover damages of $100-$1,000 per violation, plus actual damages, attorney's fees, and court costs.
Frequently Asked Questions
What rights does the FCRA give consumers?
Key rights include free annual credit reports, the right to dispute inaccurate information, limits on who can access your report, requirements for timely investigation of disputes, and the ability to sue for violations.
How do you file a dispute under the FCRA?
Write to the credit bureau identifying the inaccurate information and explaining why it is wrong. Include supporting documentation. The bureau must investigate within 30 days and correct or remove any unverified information.