Fair Credit Reporting Act Guidelines

The Fair Credit Reporting Act (FCRA) was established to protect consumers from misuse of their credit reports. Because your credit information is used to make decisions, from whether or not a landlord will rent you a home, to the limit on your credit cards, the Federal Trade Commission set forth guidelines for consumer reporting agencies. As a consumer, it's vital to understand your rights to protect yourself down the road.

Information Used Against You

Under the Fair Credit Reporting Act, if your credit report is used against you, you have a right to the name, address and phone number of the agency that reported the information. Denial of an application for insurance, a job, a credit card or a rental are covered under this part of the FCRA.

File Information

Each year, you have the right to access your credit reports and credit scores through the Annual Credit Report website. You are entitled to an annual complimentary report from each of the three credit bureaus (TransUnion, Experian and Equifax). Additionally, you may request a copy of your credit report if the information on your report was used against you, you are the victim of identity theft, you are on public assistance, or you are unemployed but expect to apply for employment within 60 days.

Errors

Any errors that you detect in your credit report may be disputed by writing to the credit bureau that listed the inaccurate information. According to the Federal Trade Commission, you should make copies of any documentation you have to support your position and write a letter detailing the discrepancy. The consumer reporting agency is obligated to investigate the issue, unless your dispute is deemed "frivolous." Inaccurate information must be removed or fixed, usually within 30 days.

Negative Information

The Fair Credit Reporting Act stipulates that most negative information may not remain on a credit report for more than seven years and that bankruptcies may not appear for more than 10 years.

Limited Access

Access to your credit report is limited to those with a valid need for the information contained in your file. This means access to your file is limited to creditors, insurers, employers, landlords and businesses that have a special need for your credit information. A prospective or current employer may not access your file unless you give written consent. Additionally, you may choose to limit offers from creditors and insurance agencies based on the information in your credit report.

Violations

In the event that a credit reporting agency or a user of the credit reports does not follow the guidelines set forth by the Fair Credit Reporting Act, you may have the option to sue at the state or federal level.