Fair Credit Reporting Act - FCRA

AAA

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.

VIDEO

Loading the player...

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  • Remove outdated, negative information (seven-years old or 10 years in the case of bankruptcy).
RELATED TERMS
  1. Fair Debt Collection Practices ...

    A Federal law that limits the behavior and actions of debt collectors ...
  2. Identity Fraud Reimbursement Program

    A financial product that offers reimbursment for the costs associated ...
  3. Credit Card Accountability, Responsibility ...

    This act was designed to limit the manner in which credit card ...
  4. Financial Privacy

    A term used to encompass a wide variety of privacy issues. It ...
  5. Error Resolution

    A procedure that allows consumers to dispute bookkeeping errors ...
  6. Credit Report

    A detailed report of an individual's credit history prepared ...
Related Articles
  1. Credit & Loans

    Spotting Credit-Repair Scams

    Credit repair scams are common in today's debt-reliant world. Don't be a victim!
  2. Credit & Loans

    How To Dispute Errors On Your Credit Report

    It just takes some time and effort to rebound from a nasty case of "credit rejection shock."
  3. Credit & Loans

    The History Of Consumer Credit Rights

    The Fair Credit Billing Act of 1974 gave consumers the power to dispute credit card charges.
  4. Savings

    How Volatile Exchange Rates Affect Your Vacation

    Those ever-changing fluctuations can make a difference in anything from your hotel room to an ATM transaction.
  5. Credit & Loans

    Can Corporate Credit Cards Affect Your Credit?

    Corporate cards have a hidden downside. If the company fails to pay its bills, you could be liable for the amount and end up with a damaged credit rating.
  6. Credit & Loans

    Millennials Guide: Picking the Best Rewards Cards

    There are perks a-plenty on offer, but you have to find the right plastic for your lifestyle.
  7. Investing News

    What Is The New Credit Card Chip Good For?

    Under current U.S. credit card requirements, credit card issuers are required to issue chip cards as of October 1, 2015. Instead of swiping your card as you do now, you will slide the card into ...
  8. Credit & Loans

    5 Ways to Maximize Your Credit Card Points

    How to get the most bang for your rewards buck.
  9. Investing

    How to Effectively Compare Credit Card Rewards

    There are so many different reward credit cards that are available. Understanding how each type work will help you pick the best card for your needs.
  10. Credit & Loans

    Your Credit Score: More Important Than You Know

    Credit scores affect key aspects of your personal and professional life. Knowing your score and managing your credit input can make a big difference.
RELATED FAQS
  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. 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 >>
  3. 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 >>
  4. 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 >>
  5. 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 >>
  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 >>

You May Also Like

Hot Definitions
  1. Bear Market

    A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment ...
  2. Alligator Spread

    An unprofitable spread that occurs as a result of large commissions charged on the transaction, regardless of favorable market ...
  3. Tiger Cub Economies

    The four Southeast Asian economies of Indonesia, Malaysia, the Philippines and Thailand. Tiger cub economy indicates that ...
  4. Gorilla

    A company that dominates an industry without having a complete monopoly. A gorilla firm has large control of the pricing ...
  5. Elephants

    Slang for large institutions that have the funds to make high volumes trades. Due to the large volumes of stock that elephants ...
  6. Widow's Exemption

    In general terms, a widow's exemption refers to the amount that can be deducted from taxable income by a widow, thereby reducing ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!