Fair Credit Reporting Act (FCRA)

The Fair Credit Reporting Act (FCRA) is a major federal law that regulates the collection, dissemination, and use of consumer credit information. Along with the Fair Debt Collection Practices Act (FDCPA), it forms the base of consumer credit rights in the United States. FreeCreditDispute.com uses the protections found within FCRA in many of our credit dispute letters.   

This FCRA states very clearly that any buisness (mortgage, credit card, auto loans, insurers etc.) that reports information about consumers to credit bureaus must  report under the following guidelines:

1- They must provide complete and accurate information to the credit bureaus.
2- They must investigate consumer disputes at no charge to the consumer. 
3- They must inform consumers about negative information which has been or is about to be placed on a consumer’s credit report within 30 days.

The problem that many consumers face is that the information being shared about you to the world is very often innacurate, misleading, unveriable and outdated. A study released by the U.S. Public Interest Research Group in June 2004 found that 79% of the consumer credit reports surveyed contained some kind of error or mistake. You need to take action and carefully review your credit reports for information that may not be 100% accurate.

In addition, FCRA spells out how long negative information such as late payments, bankruptcies, tax liens or judgments may stay on a consumer's credit report — typically seven years from the date of the delinquency. This is critical because all to often these dates manipulated and changed by collection companies who want to extend the time they have to collect on a debt. Use the Credit Clock program to set statutory timers for both State and Federal law.

Under § 602 of the Act, a consumer may seek a maximum of $1000 in statutory damages, plus actual damages, punitive damages and reasonable attorney's fees and costs for willful noncompliance with the Act. Any consumer may file suit in state or federal court to enforce the Act.