The Roper Law Firm
Fair Credit Reporting Act

The Fair Credit Reporting Act (FCRA) is a United States federal law (codified at 15 U.S.C. § 1681 et seq.) that regulates the collection, dissemination, and use of consumer information, including consumer credit information).

Along with the Fair Debt Collection Practices Act (FDCPA), forms the base of consumer credit rights in the United States. It was originally passed in 1970, and is enforced by the US Federal Trade Commission and private litigants.

Consumer reporting agencies (CRAs) are entities that collect and disseminate information about consumers to be used for credit evaluation and certain other purposes, including employment. Credit bureaus, a type of consumer reporting agency, hold a consumer's credit report in their databases.

Credit Reporting Agencies have a number of responsibilities under FCRA, including the following:
  • Provide a consumer with information about him or her in the agency's files and to take steps to verify the accuracy of information disputed by a consumer. Under the Fair and Accurate Credit Transactions Act (FACTA), an amendment to the FCRA passed in 2003, consumers are able to receive one free credit report a year. The free report can be requested by telephone, mail, or through the government-authorized website, www.annualcreditreport.com.
  • If negative information is removed as a result of a consumer's dispute, it may not be reinserted without notifying the consumer within five days, in writing.
  • CRAs may not retain negative information for an excessive period. The FCRA describes how long negative information, such as late payments, bankruptcies, tax liens or judgments may stay on a consumer's credit report — typically seven years from the date of the delinquency. The exceptions: bankruptcies (10 years) and tax liens (seven years from the time they are paid).
When there is a violation of the Fair Credit Reporting Act:
  • Under § 616 the law may allow a consumer to seek actual damages or a minimum of $100 - maximum of $1000, plus punitive damages and reasonable attorney's fees and costs.
  • Under § 617 of the Fair Credit Reporting Act, recovery for a negligent violation is of actual damages, plus attorney's fees.
  • Under § 618, a consumer may file suit in state or federal court to enforce the Act, if the offense is within the statute of limitations, which are 2 years from discovery and 5 years from the violation.

A violation of the Fair Credit Reporting Act can prove to be a stumbling bock that may affect various aspects relating to your financial abilities and goals. Also problematic is that violations often affect the victim's financial standing immediately. While quick to add negative marks against your credit report, companies that can affect your financial standing and credit score rarely act in a prompt manner in removing or correcting your credit report concerns.

If you are dealing with a situation in which you, as a consumer, are not being dealt with properly regarding Fair Credit Reporting Act or Fair Debt Collection Practices Act issues, find out what your legal rights are. Seek the advice and representation of experienced legal counsel.

It is important to note that it is unlawful for Creditors, Debt Collection Agencies or Third Party Debt Collectors to harass you or violate any conditions of the Fair Debt Collection Practices Act (FDCPA), or the Fair Credit Reporting Act (FCRA).