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.

INVESTOPEDIA EXPLAINS '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  • Remove outdated, negative information (seven-years old or 10 years in the case of bankruptcy).

VIDEO

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

    How do I get my free credit report and score from each credit bureau?

    Learn how to obtain copies of your credit report for free from the three credit bureaus and where you might find your credit score for free.
  2. Credit & Loans

    What's the difference between credit reports and investigative consumer reports?

    Learn about the major differences between two types of risk-evaluation reports: consumer credit reports and investigative consumer reports.
  3. Credit & Loans

    What are some examples of credit report errors that I can dispute?

    Discover how to get access to your consumer credit report, identify incorrect information, and communicate with creditors and bureaus to correct errors.
  4. Credit & Loans

    What’s the difference between a consumer disclosure and a credit report?

    Find out why consumer disclosures and credit reports are considered different documents, even though they contain similar information.
  5. Credit & Loans

    Do I still owe debt collectors for a debt that's past the statute of limitations for my state?

    Learn more about the statutes of limitations that govern certain personal debts and why you maintain obligations as a debtor even if the statute has expired.
  6. Credit & Loans

    Will using an overdraft hurt my credit score?

    Find out if overdrafting a bank account hurts a credit score, how reporting is handled and if a consumer is able to dispute the information.
  7. Credit & Loans

    How long does information stay on my credit report?

    Understand how long different types of information stay on your individual or business credit report according to the rules of the Fair Credit Reporting Act.
  8. Credit & Loans

    Spotting Credit-Repair Scams

    Credit repair scams are common in today's debt-reliant world. Don't be a victim!
  9. 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."
  10. Credit & Loans

    The History Of Consumer Credit Rights

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

You May Also Like

Hot Definitions
  1. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  2. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  3. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  4. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  5. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  6. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
Trading Center