The Fair Credit Reporting Act (FCRA) is a federal law designed to ensure the accuracy, fairness, and privacy of consumer information in the files of credit reporting agencies. These agencies include major credit bureaus and specialized agencies that collect data on rental history, medical records, and check-writing histories.
This article summarizes your key rights under the FCRA as a U.S. consumer. For further details, visit www.consumerfinance.gov/learnmore or contact the Consumer Financial Protection Bureau, located at 1700 G Street N.W., Washington, DC 20006.
1. You Must Be Notified If Information Is Used Against You
If a credit report or any other consumer report leads to the denial of your credit, insurance, employment, or other applications, the entity using the report must inform you. You have the right to receive the contact details of the consumer reporting agency that supplied the information.
2. You Have the Right to Access Your Credit File
You can request and obtain a copy of your credit file from any consumer reporting agency. This is a file disclosure, and you must provide proper identification (such as your Social Security number). In some cases, you are entitled to a free report if:
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You are denied credit or employment due to information in your report.
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You are a victim of identity theft and have placed a fraud alert.
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Your file contains incorrect information due to fraud.
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You are receiving public assistance.
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You are unemployed and plan to apply for a job within 60 days.
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You request one free annual disclosure from each nationwide credit bureau.
For more details on obtaining your free report, visit www.consumerfinance.gov/learnmore.
3. You Have the Right to Request Your Credit Score
A credit score is a numerical representation of your creditworthiness. You can request a credit score from reporting agencies that generate or distribute these scores, though a fee may apply. In mortgage transactions, your lender must provide your credit score information free of charge.
4. You Can Dispute Inaccurate or Incomplete Information
If you find incorrect or incomplete information in your file, you have the right to dispute it. The credit bureau must investigate the matter unless the dispute is deemed frivolous. For details on the dispute process, visit www.consumerfinance.gov/learnmore.
5. Consumer Reporting Agencies Must Correct or Delete Inaccurate Information
If information is found to be inaccurate, incomplete, or unverifiable, the credit bureau must remove or correct it, usually within 30 days. However, if the bureau verifies the information as accurate, it may remain on your record.
6. Outdated Negative Information Cannot Be Reported
Most negative credit information cannot be reported after seven years, while bankruptcies generally cannot be reported after ten years.
7. Access to Your Credit File Is Restricted
Only individuals or entities with a valid need—such as lenders, insurers, employers, landlords, or other businesses—can access your credit report.
8. Employers Require Your Consent to Obtain Your Credit Report
Employers or potential employers cannot access your credit report without your written consent. Exceptions apply to the trucking industry.
9. You Can Opt Out of Prescreened Credit Offers
If you receive unsolicited offers for credit or insurance based on your credit report, you have the right to opt out by calling 1-888-567-8688.
10. You Can Seek Legal Damages for FCRA Violations
If a credit bureau, creditor, or entity using consumer reports violates the FCRA, you may have the right to sue in state or federal court for damages.
11. Additional Rights for Identity Theft Victims and Military Personnel
Victims of identity theft and active-duty military personnel have special rights under the FCRA. For more details, visit www.consumerfinance.gov/learnmore.
Conclusion
Understanding your rights under the FCRA is crucial to protecting your financial health. If you suspect errors in your credit report, take action by requesting your credit file, disputing inaccuracies, and ensuring your privacy is protected. Stay informed and exercise your rights to maintain a fair and accurate credit history.