The FCRA or the Fair Credit Reporting Act is a Federal law that was originally enacted by Congress in 1970 to promote the equality, truth and the discretion of individual information compiled on credit reports by credit reporting agencies. It has often been amended to further protect consumers and the last amendment took place in December of 2003.
The main credit reporting agencies are TransUnion, Equaifax and Experian. They are in the industry of collecting and compiling information used for credit evaluation and other purposes.
The Fair Credit Reporting Act allows a consumer to discuss and challenge any information found on a credit report on the foundation of completeness and accuracy. The credit bureaus have 30 to 45 days after a dispute to show the ownership of the credit being reported. If they are unable to corroborate the accounts it must be removed from the report.
The credit reporting agencies have a number of other tasks under the FCRA, which include providing a credit report to the consumer. Prior to 2003 the consumer was required to pay for this report but an amendment in 2003 has given consumers the right to be given one free credit report from each of the main credit reporting agencies one time per year. All the consumer has to do is demand it. If credit is denied on the foundation of what is enclosed in a report, the bureau with the disputed information must also provide a report.
A consumer has the right to question any information on his or her report. As per the FCRA if information is deleted as a result of the consumer’s dispute the credit reporting agency cannot replace the negative information without notifying the consumer in writing.
The FCRA also limits the amount of time that damaging information can be retained on the report. Normally most must be removed within 7 years from the time of delinquency but bankruptcies can stay on for 10 years and tax liens can stay on for 7 years after they are paid off.
It has been projected that as many as 40% of all doubtful information is not properly verified within the time limit. A consumer can use that fact for their advantage. However, be aware that reliable and accurate information should not be disputed, as reliable and accurate information should remain on the report even if it is unhelpful.
Credit repair on credit reports can be accomplished due to the rights given by the FCRA. The consumer can do credit repair themselves or there are also professional companies that specialize in credit repair. It takes time and fortitude to be successful at credit repair but it can be accomplished.
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