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Summary of The Fair Credit Reporting Act
Every
79 seconds, someone becomes a victim of identity theft. Over 28 million people have had their credit damaged by these thieves over the last five years, and by all accounts, the problem is
getting worse. Sometimes, the problem is not identity theft, it's the three major Credit Reporting Agencies simply mixing your credit information with someone else's.
You may think a
simple telephone call to the creditor who is erroneously reporting the information on your report will resolve the situation. However, surprisingly, this often does not work, and is not the
proper method to fix the problem.
Kenneth Hiller has been handling Fair Debt Collection Practices Act (FDCPA) claims, and other types of consumer cases for over 10 years. He has
filed more cases in Western New York than any other attorney by far.
The federal Fair Credit Reporting Act (FCRA) was enacted to promote accuracy, fairness, and privacy of information in
the files of every "consumer reporting agency" (CRA). Most CRAs are credit bureaus that gather and sell information about you -- such as if you pay your bills on time or have filed
bankruptcy -- to creditors, employers, landlords, and other businesses. The largest three CRA's are Equifax, Experian, and Transunion.
The FCRA gives you specific rights, as outlined
below. There are additional rights under New York State law. A summary of those rights are as follows:
You must be told if information in your file has been used against you. Anyone
who uses information from a CRA 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.
You can find out what is in your file. At your request, a CRA must give you the information in your file, and a list of everyone who
has requested it recently. There are entitled to one free report from each CRA per year.
You can dispute inaccurate information with the CRA. If you tell a CRA that your file contains
inaccurate information, the CRA 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 CRA. (The source also must advise national CRAs -- to which it has provided the data -- of any error.) The CRA must give you a
written report of the investigation, and a copy of your report if the investigation results in any change. If the CRA's investigation does not resolve the dispute, you may add a brief statement
to your file. The CRA must normally include a summary of your statement in future reports. If an item is deleted or a dispute statement is filed, you may ask that anyone who has recently received
your report be notified of the change.
Inaccurate information must be corrected or deleted. A CRA must remove or correct inaccurate or unverified information from its files, usually within
30 days after you dispute it. However, the CRA is not required to remove accurate data from your file unless it is outdated (as described below) or cannot be verified. If your dispute results in
any change to your report, the CRA cannot reinsert into your file a disputed item unless the information source verifies its accuracy and completeness. In addition, the CRA 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.
You can dispute inaccurate items with the
source of the information. If you tell anyone -- such as a creditor who reports to a CRA -- that you dispute an item, they may not then report the information to a CRA without including a notice
of your dispute. In addition, once you've notified the source of the error in writing, it may not continue to report the information if it is, in fact, an error.
Outdated information may
not be reported. In most cases, a CRA may not report negative information that is more than seven years old; ten years for bankruptcies.
Access to your file is limited. A CRA may provide
information about you only to people with a need recognized by the FCRA -- usually to consider an application with a creditor, insurer, employer, landlord, or other business.
Your consent
is required for reports that are provided to employers, or reports that contain medical information. A CRA may not give out information about you to your employer, or prospective employer,
without your written consent. A CRA may not report medical information about you to creditors, insurers, or employers without your permission.
You may choose to exclude your name from CRA
lists for unsolicited credit and insurance offers. Creditors and insurers may use file information as the basis for sending you unsolicited offers of credit or insurance. Such offers must include
a toll-free phone number for you to call if you want your name and address removed from future lists. If you call, you must be kept off the lists for two years. If you request, complete, and
return the CRA form provided for this purpose, you must be taken off the lists indefinitely.
You may seek damages from violators. 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. The law covering credit report disputes is known as the Fair Credit Reporting Act (FCRA).
TWO RULES TO FOLLOW:
1. If you mail a dispute to a CRA, or a creditor, always make a copy of everything you mail, and mail it by certified mail, return receipt requested so that you can prove
they received it.
2. Make sure you dispute any inaccuracies with the CRA. While you are certainly permitted to lodge a dispute with the reporting creditor, you will not have
laid the grounds for a lawsuit under the FCRA unless you have disputed it with the CRA.
Note: The information contained herein is general information and is not intended to convey
legal advice. Like any area of law, there are many exceptions and qualifications to the rules and laws discussed. You should consult an attorney for advice regarding your situation.
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