Consumer reporting agencies (CRA) are entities that collect data on individuals and generate reports utilised by banks, landlords, and other businesses to determine whether to extend credit, lease properties, or offer services. These agencies may gather various types of information, including medical records, employment background, insurance claims, rental history, or check-writing history. CRAs encompass a wide range of companies, such as creditors, data brokers, and collection agencies.
A Consumer Reporting Agency (CRA) is a company that collects and maintains information about consumers’ credit history, payment habits, and other financial behaviours. They compile this information into a report that can be used by lenders, employers, and other organisations to make decisions about extending credit, offering employment, or providing other services. CRAs can be categorized as nationwide or specialty. Nationwide CRAs collect and maintain files on consumers from across the country, while specialty CRAs focus on specific categories of records, such as medical records, residential or tenant history, check-writing history, employment history, or insurance claims. Examples of CRAs include creditors, data brokers, collection agencies, check approval companies, attorneys, and alternative credit bureaus. These companies gather information about consumers from various sources, including credit card companies, banks, and other financial institutions. They then use this information to create reports that can be sold to other companies or used to make decisions about creditworthiness, employment, and other important matters. For instance, a lender might use a CRA’s report to determine loan approval, an employer might use it to screen job applicants, and an insurance company might use it to decide coverage for an individual.
A Consumer Reporting Agency (CRA) is a company that collects and maintains information about individuals’ credit history, employment history, and other personal information. They provide this information to businesses and individuals who have a legitimate need for it, such as lenders, employers, and landlords.
Under the Fair Credit Reporting Act (FCRA), you are entitled to a free copy of your credit report from each of the three major CRAs (Equifax, Experian, and TransUnion) once every 12 months. You can request your report online, by phone, or by mail.
No, a CRA cannot share your credit report with just anyone. They can only provide your credit report to those who have a permissible purpose under the FCRA, such as lenders, employers, landlords, and insurance companies. They must also obtain your consent before sharing your report for employment purposes.
If you find errors or inaccuracies on your credit report, you should contact the CRA in writing and provide them with the necessary documentation to support your claim. The CRA is required to investigate your dispute within 30 days and correct any errors found.
No, a CRA cannot report negative information about you indefinitely. Generally, negative information such as late payments, bankruptcies, and collections can only remain on your credit report for a certain period, typically seven to ten years, depending on the type of information.
Yes, you can dispute information directly with the creditor. However, it is recommended to also notify the CRA about the dispute, as they are responsible for investigating and correcting any errors on your credit report.
No, a CRA cannot include your medical information in your credit report without your consent. The FCRA prohibits the inclusion of medical information in credit reports, except in certain circumstances, such as when applying for insurance or when you provide consent.
Yes, a CRA can share your credit report with potential employers, but only with your written consent. Employers must also comply with the FCRA’s requirements, such as providing you with a copy of the report and notifying you if adverse action is taken based on the report.
Yes, you can sue a CRA for violating your rights under the FCRA. If a CRA fails to comply with the FCRA’s requirements, such as conducting a reasonable investigation of your dispute or failing to correct errors on your credit report, you may be entitled to damages and attorney’s fees.
Negative information, such as late payments, bankruptcies, and collections, can generally stay on your credit report for seven to ten years, depending on the type of information. However, positive information, such as on-time payments and good credit behavior, can remain on your report indefinitely.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 18th April 2024.
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