Credit Reporting Protections for Consumers

You have some consumer credit reporting protections and rights through the Fair Credit Reporting Act:

For example, anyone who uses information from a credit reporting agency to take action against you such as denying an application for credit, insurance, or employment must tell you, and give you the name, address, and phone number of the CRA that provided the consumer report, plus disclose your right to a free report after denial.

Also, at your request, a credit reporting agency must give you the information in your file, and a list of everyone who has requested it recently. There is no charge for the report if a person has taken action against you because of information supplied by the credit reporting agency, if you request the report within 60 days of receiving notice of the action. Consumers also are entitled to one free report every twelve months.

You must verify that you are unemployed and plan to seek employment within 60 days, that you are on welfare, or your report is inaccurate due to fraud. 

Otherwise, a credit reporting agency may charge you up to eight dollars, unless you live in a free or low cost reporting state.

If you tell a credit reporting agency that your file contains inaccurate information, the credit reporting agency must investigate the items (usually within 30 days) by presenting to its information source all relevant evidence you submit, unless your dispute is frivolous.

The source must review your evidence and report its findings to the reporting agency. The credit reporting agency must give you a written report of the investigation, and a copy of your report if the investigation results in any change.

If the credit reporting agency does not resolve the dispute, you may add a brief statement to your file. This statement must be included in future reports.

A credit reporting agency must remove or correct inaccurate or unverified information from its files, usually within 30 days after you dispute it.

The credit reporting agency cannot reinsert overturned information into your file unless the information source verifies its accuracy and completeness. Furthermore, the credit reporting agency must give you a written notice telling you it has reinserted the item. The notice must include the name, address and phone number of the information source.

If you tell anyone, such as a creditor, that you dispute an item, they may not then report the information to a credit agency without including a notice of your dispute.

In most cases, a CRA may not report negative information that is more than seven years old; ten years for bankruptcies.

 

A credit reporting agency may not give out information about you to your employer, or prospective employer, without your written consent.

 

A credit reporting agency may not report medical information about you to creditors, insurers, or employers without your permission.

If a CRA, a user or (in some cases) a provider of CRA data, violates the FCRA, you may sue them in state or federal court.