Fair Credit Reporting Act
The Fair Credit Reporting Act protects privacy and promotes the accuracy of a consumer's credit file. The FCRA dictates the laws that credit-reporting agencies must follow. The three main credit-reporting agencies are TransUnion, Equifax and Experian. They compile and maintain information about consumer credit ratings to sell the listings to businesses, potential lenders and individuals. The FCRA is a federal organization, but individual states may also impose additional reporting laws on the credit agencies.
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Privacy
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The Fair Credit Reporting Act limits access to a consumer's credit file to those with a legitimate business reason. Potential and current creditors, insurers, employers and government agencies can access to a consumer's credit report. Consumers may also specifically request that any third party have access to their credit information.
Disclosure
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Consumers have the right to know what is in their credit files. Every consumer is entitled to one free credit report from all three agencies each year. In addition, if denied credit, employment or insurance because of his credit file information, the consumer may request and receive a free report.
Consumers also have the right to limit access to their credit files by requesting that the reporting agencies omit them from distribution lists sold to creditors and insurers for solicitation purposes.
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Accuracy
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The FCRA also ensures that the credit agencies maintain accurate information within a consumer's file. Consumers have the right to dispute inaccurate information in writing, over the phone and online with each credit-reporting agency. The agency has 30 days to investigate the credibility of the reported information, and must remove it from the report if found to be inaccurate.
Timing
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Credit reporting agencies have restrictions on the time frame for reporting negative information, according to the Fair Credit Reporting Act. The agencies must remove negative information, such as delinquencies, charge-offs and late payment notations, after seven years. Judgments, listed in the public information section of the credit file, may also disappear after seven years. Bankruptcies come off after 10 years.
Exceptions
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The FCRA allows a few exceptions to the time frame for reporting negative and other information. Judgments may remain on the report longer in states where the statute of limitations exceeds seven years. There is no time limit for reporting criminal convictions. Time limits are also not applicable for information relating to an application for employment with a salary exceeding $75,000 annually. Consumers who apply for a life insurance policy of more than $150,000 may have the information listed in their credit file indefinitely.
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References
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Comments
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I have items on my credit report that are more than7 yrs old and duplicate accounts with no response from the creditors. The credit bureas refuse to remove them. I have all documents pertaining to the items. How do I get this matter resolved?
