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 THE
FAIR CREDIT REPORTING ACT FCRA
If you've ever applied for a charge account, a
personal loan, insurance, or a job, there's a file about you. This file contains
information on where you work and live, how you pay your bills, and whether
you've been sued, arrested, or filed for bankruptcy.
Companies that gather and sell this information
are called Consumer Reporting Agencies (CRAs). The most common type of CRA is
the credit bureau. The information CRAs sell about you to creditors, employers,
insurers, and other businesses is called a consumer report.
The Fair Credit Reporting Act (FCRA), enforced
by the Federal Trade Commission, is designed to promote accuracy and ensure the
privacy of the information used in consumer reports. Recent amendments to the
Act expand your rights and place additional requirements on CRAs. Businesses
that supply information about you to CRAs and those that use consumer reports
also have new responsibilities under the law.
Here are some questions consumers commonly ask
about consumer reports and CRAs -- and the answers. Note that you may
have additional rights under state laws. Contact your state Attorney General or
local consumer protection agency for more information.
Q. How do I find the CRA that has my
report?
A. Contact the CRAs listed in the Yellow
Pages under "credit" or "credit rating and reporting."
Because more than one CRA may have a file on you, call each until you locate
all the agencies maintaining your file. The three major national credit
bureaus are:
- Equifax, P.O. Box 740241,
Atlanta, GA 30374-0241
(800) 685-1111.
- Experian (formerly TRW),
P.O. Box 2104
Allen, TX 75013
(888) EXPERIAN (397-3742).
- Trans Union
P.O. Box 1000
Chester, PA 19022
(800) 916-8800.
In addition, anyone who takes action against
you in response to a report supplied by a CRA -- such as denying your
application for credit, insurance, or employment -- must give you the name,
address, and telephone number of the CRA that provided the report.
Q. Do I have a right to know what's
in my report?
A. Yes, if you ask for it. The CRA must tell
you everything in your report, including medical information, and in most
cases, the sources of the information. The CRA also must give you a list of
everyone who has requested your report within the past year -- two years for
employment related requests.
Q. Is there a charge for my report?
A. Sometimes. There's no charge if a company
takes adverse action against you, such as denying your application for credit,
insurance or employment, and you request your report within 60 days of
receiving the notice of the action. The notice will give you the name,
address, and phone number of the CRA. In addition, you're entitled to one free
report a year (1) you're unemployed and plan to look for a job within 60 days,
(2) you're on welfare, or (3) your report is inaccurate because of fraud.
Otherwise, a CRA may charge you up to $8 for a copy of your report.
Q. What can I do about inaccurate or
incomplete information?
A. Under the new law, both the CRA and the
information provider have responsibilities for correcting inaccurate or
incomplete information in your report. To protect all your rights under this
law, contact both the CRA and the information provider.
First, tell the CRA in writing what information
you believe is inaccurate. CRAs must reinvestigate the items in question -
usually within 30 days -- unless they consider your dispute frivolous. They also
must forward all relevant data you provide about the dispute to the information
provider. After the information provider receives notice of a dispute from the
CRA, it must investigate, review all relevant information provided by the CRA,
and report the results to the CRA. If the information provider finds the
disputed information to be inaccurate, it must notify all nationwide CRAs so
that they can correct this information in your file.
When the reinvestigation is complete, the CRA
must give you the written results and a free copy of your report if the dispute
results in a change. If an item is changed or removed, the CRA cannot put the
disputed information back in your file unless the information provider verifies
its accuracy and completeness, and the CRA gives you a written notice that
includes the name, address, and phone number of the provider.
Second, tell the creditor or other information
provider in writing that you dispute an item. Many providers specify an address
for disputes. If the provider then reports the item to any CRA, it must include
a notice of your dispute. In addition, if you are correct -- that is, if the
information is inaccurate -- the information provider may not use it again.
Q. What can I do if the CRA or
information provider won't correct the information I dispute?
A. A reinvestigation may not resolve your
dispute with the CRA. If that's the case, ask the CRA to include your
statement of the dispute in your file and in future reports. If you request,
the CRA also will provide your statement to anyone who received a copy of the
old report in the recent past. There usually is a fee for this service.
If you tell the information provider that you
dispute an item, a notice of your dispute must be included anytime the
information provider reports the item to a CRA.
Q. Can my employer get my report?
A. Only if you say it's okay. A CRA may not
supply information about you to your employer, or to a prospective employer,
without your consent.
Q. Can creditors, employers, or
insurers get a report that contains medical information about me?
A. Not without your approval.
Q. What should I know about
"investigative consumer reports"?
A. "Investigative consumer reports"
are detailed reports that involve interviews with your neighbors or
acquaintances about your lifestyle, character, and reputation. They may be
used in connection with insurance and employment applications. You'll be
notified in writing when a company orders such a report. The notice will
explain your right to request certain information about the report from the
company you applied to. If your application is rejected, you may get
additional information from the CRA. However, the CRA does not have to reveal
the sources of the information.
Q. How long can a CRA report negative
information?
A. Seven years. There are certain exceptions:
- Information about criminal convictions may
be reported without any time limitation.
- Bankruptcy information may be reported for
10 years.
- Information reported in response to an
application for a job with a salary of more than $75,000 has no time
limit.
- Information reported because of an
application for more than $150,000 worth of credit or life insurance has
no time limit.
- Information about a lawsuit or an unpaid
judgment against you can be reported for seven years or until the statute
of limitations runs out, whichever is longer.
Q. Can anyone get a copy of my
report?
A. No. Only people with a legitimate business
need, as recognized by the FCRA. For example, a company is allowed to get your
report if you apply for credit, insurance, employment, or to rent an
apartment.
Q. How can I stop a CRA from
including me on lists for unsolicited credit and insurance offers?
A. Creditors and insurers may use CRA file
information as a basis for sending you unsolicited offers. These offers must
include a toll-free number for you to call if you want to remove your name and
address from lists for two years; completing a form that the CRA provides for
this purpose will keep your name off the lists permanently.
Q. Do I have the right to sue for
damages?
A. You may sue a CRA, a user or -- in some
cases -- a provider of CRA data, in state or federal court for most violations
of the FCRA. If you win, the defendant will have to pay damages and reimburse
you for attorney fees to the extent ordered by the court.
Q. Are there other laws I should know
about?
A. Yes. If your credit application was
denied, the Equal Credit Opportunity Act requires creditors to specify why --
if you ask. For example, the creditor must tell you whether you were denied
because you have "no credit file" with a CRA or because the CRA says
you have "delinquent obligations." The ECOA also requires creditors
to consider additional information you might supply about your credit history.
You may want to find out why the creditor denied your application before you
contact the CRA.
Q. Where should I report violations
of the law?
A. Although the FTC can't act as your lawyer
in private disputes, information about your experiences and concerns is vital
to the enforcement of the Fair Credit Reporting Act. Send your questions or
complaints to: Consumer Response Center -- FCRA, Federal Trade Commission,
Washington, D.C. 20580.
For More Information
The FTC works for the consumer to prevent
fraudulent, deceptive and unfair business practices in the marketplace and to
provide information to help consumers spot, stop and avoid them. To file a
complaint or to get free information on consumer issues, call toll free
1-877-FTC-HELP (1-877-382-4357)
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