Fair Credit Reporting Act
Know Your Rights Under the Fair Credit Reporting Act (FCRA)
The Fair Credit Reporting Act (FCRA) is a federal law designed to promote accuracy, fairness, and privacy when it comes to the information contained in consumer credit reports. Whether you're applying for a loan, a job, or an insurance policy, your credit report plays a crucial role. Here’s a breakdown of your most important rights under the FCRA.
Your Key Rights Under the FCRA
1. You Must Be Notified If Your Credit Information Is Used Against You
If a lender, employer, or insurer denies your application based on your credit report, they must inform you and provide details about the consumer reporting agency that supplied the information.
2. You Have the Right to Access Your Credit File
You can request and obtain all the information in your credit file. In many cases, you can receive a free report if:
You were denied credit, insurance, or employment based on your report.
You are a victim of identity theft and have placed a fraud alert.
Your file contains inaccurate information due to fraud.
You are on public assistance.
You are unemployed and plan to seek work within 60 days.
Additionally, all consumers are entitled to one free credit report every 12 months from each of the three major credit bureaus.
3. You Have the Right to Request Your Credit Score
Your credit score is a numerical representation of your creditworthiness. While you may need to pay for it, some mortgage lenders provide this information for free during the loan process.
4. You Can Dispute Inaccurate or Incomplete Information
If you find errors in your credit report, you can dispute them. Consumer reporting agencies must investigate and correct or remove any information that is inaccurate, incomplete, or unverifiable within 30 days.
5. Consumer Reporting Agencies Cannot Report Outdated Negative Information
Negative information generally cannot be reported beyond:
7 years for most negative credit information.
10 years for bankruptcies.
6. Your Credit Report Access Is Limited
Only individuals or companies with a valid reason—such as lenders, insurers, landlords, or employers—can access your credit report.
7. Employers Need Your Consent to Access Your Report
An employer must obtain your written consent before pulling your credit report for employment decisions (except in certain trucking industry cases).
8. You Can Opt Out of Prescreened Credit and Insurance Offers
If you're receiving unwanted prescreened offers of credit or insurance, you can opt out by calling 1-888-5-OPTOUT (1-888-567-8688).
Your Right to a Security Freeze
A security freeze prevents consumer reporting agencies from releasing your credit report without your authorization. This can help protect against identity theft, though it may also delay approval for loans or credit accounts.
Alternatively, you can place a fraud alert on your credit file at no cost:
Initial fraud alert: Lasts for 1 year.
Extended fraud alert: Lasts for 7 years (available for identity theft victims).
Taking Action Against Violations
If a consumer reporting agency, creditor, or information provider violates the FCRA, you may have the right to sue them in state or federal court for damages.
Additional Rights for Identity Theft Victims & Military Personnel
If you're a victim of identity theft or are active-duty military personnel, you may have extra protections under the FCRA. Learn more at www.consumerfinance.gov/learnmore.
State-Specific Consumer Rights
Some states offer additional protections beyond federal law. To find out more, contact your state’s attorney general or consumer protection agency.
For more details, visit the Consumer Financial Protection Bureau (CFPB) at:
📍 1700 G Street N.W., Washington, DC 20552
🌐 www.consumerfinance.gov/learnmore
By understanding and exercising your rights under the Fair Credit Reporting Act, you can take control of your credit and protect your financial future. Stay informed, check your credit reports regularly, and dispute any inaccuracies.
