Fair Credit Reporting Act - FCRA


DEFINITION of 'Fair Credit Reporting Act - FCRA'

The act that regulates the collection of credit information and access to your credit report. It was passed in 1970 to ensure fairness, accuracy and privacy of the personal information contained in the files of the credit reporting agencies. It requires that any person or entity requesting your report must demonstrate a permissible purpose for the information before it is released. It also designates the Federal Trade Commission (FTC) as the enforcement authority for the provisions of the act.


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BREAKING DOWN 'Fair Credit Reporting Act - FCRA'

Under this act, you have the right to:

  • Know what's in your file.

  • Free file disclosure once per year from each of the major credit bureaus.

  • Ask for your credit score (there may be a fee).

  • Verify accuracy of report when required for employment purposes.

  • Notification if your file has been used against you.

  • Dispute and correct information that is incomplete or inaccurate.

  • Remove outdated, negative information (seven-years old or 10 years in the case of bankruptcy).
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  1. What are some examples of credit report errors that I can dispute?

    The business of reporting consumer credit is highly regulated. The Fair Credit Reporting Act and the Fair and Accurate Credit ... Read Full Answer >>
  2. Do I still owe debt collectors for a debt that's past the statute of limitations ...

    Learn what a statute of limitations on debt actually limits; that is, what activity or action can no longer justify legal ... Read Full Answer >>
  3. What's the difference between credit reports and investigative consumer reports?

    Investigative consumer reports receive a lot less notoriety than consumer credit reports, probably because you are far more ... Read Full Answer >>
  4. What’s the difference between a consumer disclosure and a credit report?

    Consumer disclosures and consumer credit reports are both regulated by the Fair Credit Reporting Act (FCRA) and the Fair ... Read Full Answer >>
  5. How do I get my free credit report and score from each credit bureau?

    Under the federal Fair Credit Reporting Act (FCRA), all Americans are entitled to receive, upon request, one free credit ... Read Full Answer >>
  6. How long does information stay on my credit report?

    Different types of reported information stay on your credit report for different lengths of time; positive information can ... Read Full Answer >>
  7. Will using an overdraft hurt my credit score?

    Overdrafting a bank account does not directly hurt your credit score unless the debt is ignored for so long that the bank ... Read Full Answer >>

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