A Basic Guide to Your Rights Under the Fair Credit Reporting Act (FCRA)

The Fair Credit Reporting Act (FCRA) was "designed to promote accuracy, fairness, and privacy of information in the files of every consumer reporting agency". So what does that mean to you? Well every credit reporting agency gathers and sells files of information about you and if that information is incorrect it can hurt your personal finances. The information that is gathered tells creditors and others how you pay your bills, whether or not you have been sued, filed for bankruptcy, declared any deferments, and the like. Under the FCRA you have specific rights about what can and cannot be reported. Here is a brief guide to your rights under the FCRA, 15 U.S.C. 1681 et. seq. as released by the Federal Trade Commission.

You can find out what's in your file.

If a credit reporting agency has information on you, they must release it to you. All of the information in your file, as well as a list of everyone that's requested your information is legally available to you at will under the FCRA. You are also entitled to one free credit report every 12 months, and upon denial of credit. Simply request a copy within 60 days of denial and there is no charge. Additional credit reports can be "purchased" for $8.95 from many different reputable offices and online services. An accredited credit reporting bureau can also charge you for additional reports, usually at the same price.

Access to credit files is limited.

Under the FCRA, a credit reporting agency can provide some information about you only to persons or companies to whom you are applying for credit, or rental and job applications. Random people or companies are no longer allowed to surf credit reports for worthy applicants. Remember the credit card offers that you used to get bombarded with in the mail? Well, you should be seeing a lot less of them now. Unsolicited credit offers using personal credit information are now considered for the most part illegal under the FCRA.

You must be told if negative information in your file has been used against you.