Fair Credit Reporting Act

The Fair Credit Reporting Act promotes the accuracy, and ensures the privacy, of information in consumer credit reports. It requires consumer reporting agencies to maintain correct and complete files.

You have the right to review your credit report and to have erroneous information corrected. This is the essence of the Fair Credit Reporting Act, which controls the use of credit reports and promotes accuracy, fairness, and privacy of consumers' credit information.

Issuing Credit Reports
Consumer reporting agencies (also called credit bureaus), the institutions that compile and issue credit reports, are required to assist you in interpreting your report. Reports can be issued only to those with a legitimate business reason, such as creditors, employers, insurers, government agencies reviewing your status for licensing or benefit purposes, or any third party for whom you request a report.

Credit Report Errors
If you find an error on your report, you should notify the consumer reporting agency in writing immediately. The agency is responsible for investigating and for modifying or removing any inaccurate data.

The source of the error must then notify all consumer reporting agencies to which the information was sent. If you are not satisfied with the correction, you have the right to add a brief statement about the nature of the dispute.

Denial of Credit
Should a credit application be turned down because of information contained in your report, the lender is required to provide the name, address, and telephone number of the credit bureau that issued the report. You then have 60 days to request a free copy from the consumer reporting agency, which must disclose to you all information in the report, its source, and recipients of the report over the past year (two years if for employment purposes).

You have the right to have the consumer reporting agency reissue corrected reports to lenders who received an erroneous report within the last six months, or to employers who received one in the past two years.

Disclosure
Consumer reporting agencies must provide you access to the information in your credit report, as well as identify those who have requested the information recently. There is no charge for obtaining your report if you have been denied credit. Otherwise, there may or may not be a charge, depending upon the state in which you live.

Limiting Access
You may exclude your name and address from consumer reporting agency lists used by creditors and insurers to make unsolicited offers of credit and insurance. Requests made by telephone are good for two years. For permanent exclusion from such lists, you must complete a form available from the consumer reporting agencies. To request exclusion from Equifax, Experian, and TransUnion, call (888) 567-8688.

Consumers have the right to sue consumer reporting agencies, users, and providers in state and federal court for violations of the Fair Credit Reporting Act.