Define: Fair Credit Reporting Act

The FCRA is a federal law that regulates the collection, dissemination, and use of consumer credit information.

Consumers have the right to access their credit reports, dispute inaccurate information, and receive notice if adverse action is taken based on their credit report.

A consumer report includes any written, oral, or other communication of information by a consumer reporting agency that is used or expected to be used for the purpose of determining a consumer’s eligibility for credit, insurance, employment, or other purposes.

Consumer reporting agencies are required to ensure the accuracy of the information they collect and provide consumers with access to their credit reports.

Employers can use credit reports for employment purposes, but they must comply with the FCRA’s requirements, including obtaining the consumer’s consent and providing adverse action notices.

Violations of the FCRA can result in civil liability, including actual damages, punitive damages, and attorney’s fees.

Yes, consumers have the right to sue creditors for violating the FCRA, and may be entitled to damages if the violation caused them harm.

Most negative information, such as late payments or bankruptcies, can stay on a credit report for seven years, while some information, such as bankruptcies, can stay on for up to ten years.

Yes, consumers are entitled to one free copy of their credit report from each of the three major credit reporting agencies every 12 months.

Consumers can dispute inaccurate information on their credit report by contacting the credit reporting agency and the creditor that provided the information, and by providing supporting documentation.