Know Your Rights- The FCRA

- May 27, 2019 Improving Credit0 comments

The Fair Credit Report Act (FCRA) is over one hundred pages to read. Understandably, many consumers are not aware of their rights found in the FCRA, as they do not have the time to read all those hard to understand English pages. In this post, I will give you, in plain English, some key points from the FCRA so that you will have a basic idea of your rights.

 

 

Credit Inquiries

 

 

The FCRA states that the credit bureaus may only furnish a copy of your credit report for a permissible purpose which includes:

  1. Court order
  2. Employment application
  3. Credit transaction
  4. Insurance underwriting
  5. Business transaction in which a consumer report is needed

Please note that in all cases (except for a court order), a hard credit pull can only be done with the consumer’s consent.

 

 

Prescreened Offers

 

 

A consumer has the right to request to opt-out from prescreened or prequalified offers. Request can be submitted online
https://www.optoutprescreen.com/ or call 888-567-8688.

 

 

Negative Marks

 

 

There is a limit on how long negative marks can stay on the credit report. For example, a charge off or late payment can only be reported for 7 years. A Chapter 7 bankruptcy can be reported for 10 years. See this post for more details.

 

 

Identity Theft

 

 

If someone feels that he/she may be the victim of identity theft, then they have the right to request the credit bureaus to place a fraud alert on their credit report. they may also choose a request to entirely freeze their credit reports. Both of these options are free. You can read more about credit freezes and fraud alerts here and here.

The credit bureaus must immediately delete all negative marks from a consumer’s credit report which are reported as a result of identity theft.

 

 

Disputes

 

 

The credit bureaus need to take proper action to make sure that all information found on consumers’ credit reports are one hundred percent accurate. If a consumer disputes an item found on their credit report, then the credit bureaus have 30 days to investigate the matter. If after 30 days, the credit bureaus are not able to fully verify the information reported then they will need to remove it from the consumer’s credit report immediately.

If items were previously deleted from a credit report due to them being inaccurate, then they are not allowed to reappear on the consumer’s credit report until they are proven to be fully accurate by the furnisher.

A consumer should receive the results from a dispute within 5 days of when the credit bureaus completed their investigation. If there were any changes to the credit report, then the consumer has the right to request a free copy of their credit report as well.

 

 

Annual Free Copy of Credit Report

 

 

A consumer has the right to request a free copy of their credit report once every year. A consumer also has the right to request a free copy within 60 days, after they were declined for credit due to information found on their credit report. Requests can be submitted,

Online: https://www.annualcreditreport.com

Phone: 1-877-322-8228

Mail:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

 

 

End Note

 

 

Please note that this post is just to give you a basic overview of your rights found in the FCRA. To learn more about the FCRA read
https://www.ftc.gov/system/files/545a_fair-credit-reporting-act-0918.pdf

Thanks!

Was this article helpful?

Sam Sam has nearly a decade's worth of experience educating his many readers on everything credit. Sam spends his days checking out credit cards for a full report, from the minute benefit details to the shebang of welcome bonuses. Plus studying the ins and outs of building proper credit. It’s his favorite pastime and he loves sharing it with others.

Leave A Comments

This site uses Akismet to reduce spam. Learn how your comment data is processed.

0 Comments

Recent Posts

Follow us

Click here to subscribe to
our WhatsApp channel

Todays
best offers

Chase Ink Business Preferred

Earn 100,000 points after $15,000 spent within the first 3 months.

more info

British Airways Visa Signature Card

Earn a total of 100,000 points after $20,000 spent within the first year.

more info

Chase Sapphire Preferred

Earn 80,000 points after $4,000 spent within the first 3 months.

more info

Iberia Visa Signature Card

Earn a total of 100,000 points after $20,000 spent within the first year.

more info

You May Also Like

How long do marks stay on my credit report?

How long do marks stay on my credit report?

The FCRA has set rules for how long negative marks are allowed to stay on your credit report. Here is a list: Credit inquiries Credit inquiries stay on the credit report for 2 years, but they only effect credit for 12 months. Late payments Late payments may stay on...

read more
For How Long Will A Late Payment Affect Credit?

For How Long Will A Late Payment Affect Credit?

It Happens To The Best Of Us In this day and age, we all run extremely busy lives. No one is an angel, and therefore, even the best of us may forget to pay our credit cards bill one month. In this post, I want to discuss how much a late payment will hurt your credit...

read more
Free Annual Credit Report- The Good and Bad

Free Annual Credit Report- The Good and Bad

The FCRA (Fair Credit Reporting Act) instructs all three credit bureaus that they must provide every American consumer a right to receive a free copy of their credit report annually. But, as the saying goes, “When getting free honey, you may get stung too”. So here in...

read more
Tricks on How to Improve Your Credit Score Fast

Tricks on How to Improve Your Credit Score Fast

Did you know that even if you never missed a payment your credit score may still be below 650? Why? Credit models do not only look at your timely payments when they calculate your credit score. They look at many factors. So listen up for a few simple tricks on what...

read more

Download link sent
succesfully

Got it *please check your promotional inbox

Error sending download link

Try Again