Consumer Reporting Agencies (CRAs) are companies that collect and maintain consumer information, which is then used to generate consumer reports. These reports are used by businesses and lenders to assess an individual’s creditworthiness and make decisions regarding credit applications, employment, insurance, and other financial transactions.
CRAs gather data from various sources, including public records, credit card companies, banks, and other financial institutions. They compile this information into comprehensive reports that include an individual’s credit history, payment patterns, outstanding debts, and any negative information such as bankruptcies or late payments.
The three major CRAs in the United States are Equifax, Experian, and TransUnion. These agencies play a crucial role in the financial industry by providing accurate and up-to-date information to help businesses make informed decisions. However, it is important for consumers to regularly review their credit reports and report any inaccuracies or fraudulent activities to ensure their financial well-being.
A CRA is a company that collects and maintains information on consumers’ credit history, payment habits, and other financial behaviors.
The Fair Credit Reporting Act (FCRA) is the primary federal law that regulates CRAs. Some states also have their own laws that govern CRAs.
CRAs can collect and report information on a consumer’s credit history, payment habits, employment history, and other financial behaviors.
CRAs can keep most negative information on file for seven years, while bankruptcy information can be reported for up to ten years.
CRAs can share information with certain third parties, such as lenders, employers, and landlords, but they must have a permissible purpose for doing so under the FCRA.
Yes, consumers have the right to dispute inaccurate or incomplete information on their credit report with the CRA that provided the information.
CRAs must investigate disputes within 30 days of receiving them and provide the consumer with the results of the investigation.
Yes, consumers are entitled to one free credit report from each of the three major CRAs (Equifax, Experian, and TransUnion) every 12 months.
CRAs can charge fees for additional credit reports beyond the free annual report, but the fees must be reasonable and disclosed to the consumer.
Consumers can file a complaint with the Consumer Financial Protection Bureau (CFPB) or sue the CRA for damages under the FCRA.
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: 13th April 2024.
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