Fair Credit Reporting Act (FRCA):
How these Rules Protect the
Consumer
by rebuildcreditscores.com
How these Rules Protect the
Consumer
by rebuildcreditscores.com
| Copyright RebuildCreditScores 2008. All Rights Reserved |
Overview of the Fair Credit Reporting Act
Who Can View Your Credit
Credit reports can only be issued to entities that have a legitimate business
reason. Legitimate business entities would include creditors, employers, insurers,
and government agencies reviewing your status for licensing or benefit purposes,
or any third party for whom you request a report.
Errors in Your Credit Report
The credit reporting agencies (CRAs) are responsible for investigating, correcting,
and deleting incorrect information contained in your credit reports. The source of
the error must notify all consumer reporting agencies where they sent information.
Fair and Accurate Credit Transactions Act (FACT Act or FACTA)
As an amendment to the Fair Credit Reporting Act a law was passed by the U.S.
Congress in 2003 which allows consumers to request and obtain a free credit
report once every 12 months. The consumer can obtain a free report from all three
major credit reporting agencies, Experian, Equifax and TransUnion. To obtain your
reports visit www.annualcreditreport.com.
Include a Statement in Your Credit Report
If you are unsatisfied with the investigation results or correction, you have the right
to add a brief statement (100 words or less) about the issue to your credit report.
The statement should be a clarification, not an explanation, of credit problems.
Denied Credit
If you have been denied credit, a job or insurance because of information
contained in your credit reports, the business which denied you is required to
provide you with the name and address of the credit bureau that issued the credit
report. You have 30 days to request a free copy from the bureau. The bureaus
must disclose to you all information in the report, its source, and who has recently
received the report.
You have the right to have the credit bureau re-issue corrected reports to lenders
who received reports within the last six months, or to employers who received one
in the past two years.
Disclosure
Consumer reporting agencies are required to provide you access to the
information in your credit report. Any entity that has requested your credit report
must also be disclosed to you. Unless you have been denied credit within the
previous 60 days, you must pay for each report. You are however, entitled to one
free report a year. Also, you are entitled to a free report if you are unemployed
and plan to look for a job within 60 days, you are on welfare, or your report is
inaccurate due to fraud.
Opting Out
You may request that consumer reporting agencies do not distribute your name on
lists used by creditors, solicitors and insurers to make unsolicited offers of credit
and insurance. The credit reporting agencies make money by selling your
information. Opting out of marketing lists protects your information. The marketing
lists are not only sold to companies wanting to send you unsolicited credit offers,
they are also sold to collection agencies and those who purchase debts. When
you opt-out, your information will only be given to someone with "Permissible
Purposes". You can Opt-Out online or via telephone. Visit
www.optoutprescreen.com or 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.
Discrimination
The Equal Credit Opportunity Act requires that creditors apply credit standards in
a fair manner in order that all consumers are given an equal chance to obtain
credit. It does not require all creditors to have the same standards, nor does it
guarantee approval of loan applications. Lenders cannot discriminate on the basis
of sex, marital status, race, religion, national origin, age, income from assistance
programs when reviewing credit applications.
Limited Information
Your sex, race, color, religious affiliation or national origin cannot be inquired
about on a credit application unless you are applying for residential real estate.
Even in that instance you are not required to answer the question. The information
on a real estate application is only to be used to enforce fair housing laws, not for
evaluation purposes. Your marital status cannot be asked about unless it is a joint
application where you spouse will help you secure, use or be legally responsible
for the loan. Your plans to have children is also a question that cannot be asked.
Credit for Couples
Spouses have the right to have their credit histories listed separately, including the
accounts they use jointly. Married women have the option of using their birth name
or married name. In the case of couples who jointly established credit, but whose
credit appears in the name of only one spouse, the other partner has the right to
rely on that credit history as well.
Divorced Individuals
You do not have to disclose alimony, child support or maintenance on a credit
application if you do not plan to use this income to repay the loan for which you
are applying.
Disclosure of Age
Creditors can ask how old you are to make certain you are of legal age to enter
into a contract. Your age can be considered to estimate how long you will continue
to work; however, your age cannot be used to deny credit to those 62 or older.
Change of Circumstance
Life circumstances such as marital status, change of name, aging or retirement
cannot affect the terms of your loan. For instance, the length, interest, or other
features of loans cannot be changed, you cannot be forced to reapply for a loan
and your loan cannot be terminated.
Applicant Notification
Lenders must notify credit applicants of their decision within 30 days after the
application is completed. If credit is denied, the creditor must provide a written
statement that includes the action taken, reason for denial, or how to request the
reason for denial, your rights as an applicant and the name and address of the
appropriate enforcing federal agency. If you believe that discrimination has taken
place, you have the right to file a lawsuit and if the creditor is found guilty of
discrimination they can be held liable for actual damages and punitive damages up
to $10,000.
To view the actual Fair Credit Reporting Act Statutes visit:
www.ftc.gov/os/statutes/031224fcra.pdf
Who Can View Your Credit
Credit reports can only be issued to entities that have a legitimate business
reason. Legitimate business entities would include creditors, employers, insurers,
and government agencies reviewing your status for licensing or benefit purposes,
or any third party for whom you request a report.
Errors in Your Credit Report
The credit reporting agencies (CRAs) are responsible for investigating, correcting,
and deleting incorrect information contained in your credit reports. The source of
the error must notify all consumer reporting agencies where they sent information.
Fair and Accurate Credit Transactions Act (FACT Act or FACTA)
As an amendment to the Fair Credit Reporting Act a law was passed by the U.S.
Congress in 2003 which allows consumers to request and obtain a free credit
report once every 12 months. The consumer can obtain a free report from all three
major credit reporting agencies, Experian, Equifax and TransUnion. To obtain your
reports visit www.annualcreditreport.com.
Include a Statement in Your Credit Report
If you are unsatisfied with the investigation results or correction, you have the right
to add a brief statement (100 words or less) about the issue to your credit report.
The statement should be a clarification, not an explanation, of credit problems.
Denied Credit
If you have been denied credit, a job or insurance because of information
contained in your credit reports, the business which denied you is required to
provide you with the name and address of the credit bureau that issued the credit
report. You have 30 days to request a free copy from the bureau. The bureaus
must disclose to you all information in the report, its source, and who has recently
received the report.
You have the right to have the credit bureau re-issue corrected reports to lenders
who received reports within the last six months, or to employers who received one
in the past two years.
Disclosure
Consumer reporting agencies are required to provide you access to the
information in your credit report. Any entity that has requested your credit report
must also be disclosed to you. Unless you have been denied credit within the
previous 60 days, you must pay for each report. You are however, entitled to one
free report a year. Also, you are entitled to a free report if you are unemployed
and plan to look for a job within 60 days, you are on welfare, or your report is
inaccurate due to fraud.
Opting Out
You may request that consumer reporting agencies do not distribute your name on
lists used by creditors, solicitors and insurers to make unsolicited offers of credit
and insurance. The credit reporting agencies make money by selling your
information. Opting out of marketing lists protects your information. The marketing
lists are not only sold to companies wanting to send you unsolicited credit offers,
they are also sold to collection agencies and those who purchase debts. When
you opt-out, your information will only be given to someone with "Permissible
Purposes". You can Opt-Out online or via telephone. Visit
www.optoutprescreen.com or 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.
Discrimination
The Equal Credit Opportunity Act requires that creditors apply credit standards in
a fair manner in order that all consumers are given an equal chance to obtain
credit. It does not require all creditors to have the same standards, nor does it
guarantee approval of loan applications. Lenders cannot discriminate on the basis
of sex, marital status, race, religion, national origin, age, income from assistance
programs when reviewing credit applications.
Limited Information
Your sex, race, color, religious affiliation or national origin cannot be inquired
about on a credit application unless you are applying for residential real estate.
Even in that instance you are not required to answer the question. The information
on a real estate application is only to be used to enforce fair housing laws, not for
evaluation purposes. Your marital status cannot be asked about unless it is a joint
application where you spouse will help you secure, use or be legally responsible
for the loan. Your plans to have children is also a question that cannot be asked.
Credit for Couples
Spouses have the right to have their credit histories listed separately, including the
accounts they use jointly. Married women have the option of using their birth name
or married name. In the case of couples who jointly established credit, but whose
credit appears in the name of only one spouse, the other partner has the right to
rely on that credit history as well.
Divorced Individuals
You do not have to disclose alimony, child support or maintenance on a credit
application if you do not plan to use this income to repay the loan for which you
are applying.
Disclosure of Age
Creditors can ask how old you are to make certain you are of legal age to enter
into a contract. Your age can be considered to estimate how long you will continue
to work; however, your age cannot be used to deny credit to those 62 or older.
Change of Circumstance
Life circumstances such as marital status, change of name, aging or retirement
cannot affect the terms of your loan. For instance, the length, interest, or other
features of loans cannot be changed, you cannot be forced to reapply for a loan
and your loan cannot be terminated.
Applicant Notification
Lenders must notify credit applicants of their decision within 30 days after the
application is completed. If credit is denied, the creditor must provide a written
statement that includes the action taken, reason for denial, or how to request the
reason for denial, your rights as an applicant and the name and address of the
appropriate enforcing federal agency. If you believe that discrimination has taken
place, you have the right to file a lawsuit and if the creditor is found guilty of
discrimination they can be held liable for actual damages and punitive damages up
to $10,000.
To view the actual Fair Credit Reporting Act Statutes visit:
www.ftc.gov/os/statutes/031224fcra.pdf
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The Fair Credit Reporting Act
(FCRA) promotes the accuracy
and privacy of information in
consumer credit reports.
The use of consumer credit
reports are controlled by this act.
The FCRA requires consumer
reporting agencies to maintain
accurate and complete files.
According the FCRA, you have a
right to review your credit reports
and have inaccurate, incorrect and
obsolete information corrected.
(FCRA) promotes the accuracy
and privacy of information in
consumer credit reports.
The use of consumer credit
reports are controlled by this act.
The FCRA requires consumer
reporting agencies to maintain
accurate and complete files.
According the FCRA, you have a
right to review your credit reports
and have inaccurate, incorrect and
obsolete information corrected.
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Related Topics
More Resources
Sample Dispute letter to creditor. Use this letter to get creditors to correct billing
errors.
Disputing information on your credit files
Tips for Disputing Negative information in your Credit Files.
Fair Credit Billing Act (FCBA)
The Fair Credit Billing Act provides for the prompt correction of errors on open-end
credit accounts such as department store credit cards and protects consumers'
credit ratings while they are settling disputes.
Your States Statute of Limitations
Learn the amount of time a creditor can sue you for a debt according to your State.
errors.
Disputing information on your credit files
Tips for Disputing Negative information in your Credit Files.
Fair Credit Billing Act (FCBA)
The Fair Credit Billing Act provides for the prompt correction of errors on open-end
credit accounts such as department store credit cards and protects consumers'
credit ratings while they are settling disputes.
Your States Statute of Limitations
Learn the amount of time a creditor can sue you for a debt according to your State.