The fcra is chiefly concerned with the way credit reporting agencies use the information they receive regarding your. Lock your transunion credit report to prevent criminals from using it to get credit in your name. Chances are you dont give these everyday transactions a second thought. It is designed to protect the integrity and privacy of your credit information. The fcra has been revised numerous times since it took effect in 1971, notably by passage of the consumer credit reporting reform act of 1996, the grammleachbliley act of 1999, and the fair and accurate credit transactions act of 2003 fact act. May 14, 2019 the fair credit reporting act is the primary federal law that governs the collection and reporting of credit information about consumers. Ensure that the information on all of your credit reports. On september 12, 2018, the bureau issued an interim final rule updating the bureaus model summary of consumer rights and summary of consumer identity theft rights to reflect changes made to the fair credit reporting act by the economic growth, regulatory relief, and consumer protection act. Aug 14, 2012 credit reporting agencies, once small and local, were consolidating to create a national credit reporting system, and the law offered a consumerfriendly counterweight to keep the playing field even.
Section 605a of the fair credit reporting act 15 u. What to look for on your credit report, plus sample credit reports and credit scores. Fdic law, regulations, related acts consumer financial. The fcra offers valuable protections for employees or applicants when their personal information is used to make employment decisions. There are many types of consumer reporting agencies, including credit bureaus and specialty agencies such as agencies.
The fair credit reporting act fcra this overview of the fair credit reporting act fcra addresses requirements related to the employment background checking process and is provided only as general guidance to first advantages customers. The fact act created many new responsibilities for consumer reporting agencies and users of consumer reports. An act to amend the fair credit reporting act, to prevent identity theft, improve resolution of consumer disputes, improve the accuracy of consumer records, make improvements in the use of, and consumer access to, credit information, and for other purposes. A summary of your rights under the fair credit reporting act the federal fair credit reporting act fcra promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. The fair credit reporting act is the primary federal law that governs the collection and reporting of credit information about consumers. What is the purpose of the fair credit reporting act.
This statute reauthorizes the fair credit reporting act the fcra and, among other things, amends the fcra to reduce the. The fair credit reporting act as a public service, the staff of the federal trade commission ftc has prepared the following complete text of the fair credit reporting act fcra, 15 u. A summary of your rights under the fair credit reporting act shrm. The fair credit reporting act fcra is a federal law that governs how a credit reporting agency cra handles your credit information. When do employers need to comply with the fair credit. Fair credit reporting improvement act of 2014 advantage ccs. The credit reporting act publications saskatchewan government. Under the fcra, consumers have a right to view the information in their credit file and to dispute inaccurate information. Congressional findings and statement of purpose 15 u. Company name fair credit reporting act disclosure statement.
Act, public law 115174 may 24, 2018 amended the fair credit reporting act to require credit reporting agencies cras to provide fraud alerts for consumer files for at least one year when a consumer notifies a cra of identity theft. This version of the fcra includes the amendments to the fcra set forth in the consumer credit reporting reform act of 1996 public law 104. The exception is bankruptcy which stays on your record for 10 years. This term refers to businesses that maintain historical information pertaining to credit experience on individuals or. Legal assistance department region legal service office southwest what is the fcra. As laws go, the fair credit reporting act is a pretty strong one, says cary flitter, a consumer lawyer and law professor in philadelphia. Fair credit reporting act fcra attorneys wenzel fenton. Typically, most blemishes have to come off your credit report in 7 years. The fcra is chiefly concerned with the way credit reporting agencies use the information they receive regarding your credit history. It contained many new consumer disclosure requirements as well as provisions to. A summary of your rights under the fair credit reporting act the. Fair credit reporting act consumer financial protection. Fighting back against identity theft in the course of a busy day, you may write a check at the grocery store, charge tickets to a ball game, rent a car, mail your tax returns, change service providers for your cell phone, or apply for a credit card. This title may be cited as the fair credit reporting act.
Be it enacted by the senate and house of representatives of. Compliance with both the fcra and california restrictions on credit and background checks is much more challenging. Fair credit reporting act california peculiarities. Laymans guide to the fair credit reporting act fcra by section. Information in a consumer report cannot be provided to anyone who does not have a purpose. Experian is committed to helping you protect, understand, and improve your credit. The fact act created new responsibilities for consumer reporting agencies and users of con sumer reports, many concerning consumer disclo sures and identity theft.
Anyone who denies you credit, housing, insurance, or a job because of a credit report must give you the name, address, and telephone number of the credit reporting agency cra that provided the report. A cra is an entity that assembles and sells credit information and financial. In addition to regulating consumer reporting agencies, the statute imposes a number of obligations on parties that supply consumer information to these agencies or use consumer reports. A summary of your rights under the fair credit reporting act. Summary of rights under the fair credit reporting act fcra. Credit reports for landlords creditlink corporation. The fair credit reporting act was one of the first instances of data protection law passed in the computer age. The federal fair credit reporting act fcra promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. National credit act 34 of 2005 south african government. The fair credit reporting act, as originally enacted, was title vi of pub.
As a public service, the staff of the federal trade commission ftc has prepared the following complete text of the fair credit reporting act fcra, 15 u. It includes the amendments to the fcra set forth in the consumer. As part of that law, the congress enacted a requirement, through an amendment to the fair credit reporting act 15 u. What is the fair credit reporting act and why was it created.
The law regulates the way credit reporting agencies can collect, access, use and share the data they collect in your consumer reports. The fair credit reporting act fcra the federal fair credit reporting act is the main law for consumers and companies as it relates to the credit reporting system we have here in the united states. The fair credit reporting act fcra is a widely used statute governing the collection, maintenance, and disclosure of consumers personal information. Fair credit reporting act and backgroundcheck questions texas in 2010, i received deferred adjudication for a misdemeanor class a assault in texas and was sentenced to a year of community supervision. Fair credit reporting act federal trade commission.
The act title vi of the consumer credit protection act protects information collected by consumer reporting agencies such as credit bureaus, medical information companies and tenant screening services. The fcra provides additional measures of consumer protection in the areas of fairness, accuracy, and privacy of the information collected by the credit bureaus. Rules and regulations under the fair credit reporting act dea. Congresswoman maxine waters has recently introduced the fair credit reporting improvement act of 2014 on september 10th, 2014. Your annual credit report is completely free the three credit bureaustransunion, experian and equifaxare required by federal law to provide you with a free annual credit report. Information provided concerning the disclosure and. The fair credit reporting act fcra was written in 1970 as an amendment to the consumer credit protection act. Fair credit reporting act disclosure statement in accordance with the provisions of section 604b2a of the fair credit reporting act, public law 91508, as amended by the consumer credit reporting act of 1996 title ii, subtitle d, chapter i, of public law 104208, you are being informed that reports. The medicare credit balance report is required under the authority of sections 1815a, 1833e,1886a1c and related provisions of the social security act. When employers conduct a background check including credit, criminal, and past employer checks using a third party, the background check is covered by the fair credit reporting act of 1970 fcra. Code as published by the government printing office, the format of this text does differ in minor ways from the code and from wests u. A laymans guide to fair credit reporting act fcra credit. Failure to submit this report may result in a suspension of payments.
Complying with the federal fair credit reporting act the fcra is not easy. In general, when employers use a third party to conduct background checks on applicants or employees, the federal fair credit reporting act fcra will apply the fcra governs how employers. Amendment to fair credit reporting act regarding employee investigations labor and employment practice on december 4, 2003, president bush signed into law the fair and accurate credit transactions act of 2003. For a long time, no federal agency monitored private companies compliance with the fair credit reporting act.
Since world war ii the consumer credit industry has experienced a phenomenal and continuing growth, paralleled by the development of the credit information industry2 upon which credit grantors rely in order to minimize the risks inherent in the extension of credit. All it takes to lock and unlock your report with tu credit lock is a single smartphone swipe or a mouse click. If you need legal advice, please consult a qualified attorney. A summary of your rights under the fair credit reporting act cfpb. Federal government legislation enacted to promote the accuracy, fairness, and privacy of. The fair credit reporting act fcra is a federal law that helps to ensure the accuracy, fairness and privacy of the information in consumer credit bureau files. Break up the creditreporting racket the new republic.
Although staff generally followed the format of the u. Short title this title may be cited as the fair credit reporting act. Complete copy of the fair credit reporting act law we provide a convenient copy of the law. Maxine is a ranking member of the financial services committee. Congressional findings and statement of purpose 1 15 u. It is neither intended as legal advice nor as a sole educational tool for the employers staff. If passed, this act could result in the most aggressive overhaul of the fair credit reporting act since 2003. Congress that led to the act, and the acts key regulatory innovations, set the direction of information privacy in the u. Fair credit reporting act protecting consumer rights. Summary of rights under the fair credit reporting act fcra september 17, 2018. Fcra also spells out the rules of conduct for anyone reporting to the credit reporting agencies.
Fair credit reporting act fcra and background checks. Mar 28, 2017 the consumer credit reporting reform act strengthens the fcra by doing the following. The fair credit reporting act fcra is the federal law that regulates, among other things, the accuracy and privacy of credit reports. Get a free copy of your credit report every 12 months from each credit reporting company. There are many types of consumer reporting agencies, including credit bureaus and specialty agencies such as agencies that sell. Fair credit reporting act disclosure statement by this document, employer name discloses to you that a consumer report, including an investigative consumer report containing information as to. Four laws you can use to fix your credit credit pilgrim. This is a copy of the fair credit reporting act as posted on the website of the federal trade commission. Fair credit reporting regulation v title x of the doddfrank wall street reform and consumer protection act doddfrank act transferred rulemaking authority for a number of consumer financial protection laws from seven federal agencies to the bureau of consumer financial protection bureau as. About the fair credit reporting act fcra the fair credit reporting act fcra regulates much more than the credit report or credit score you hear so much about. Its rules cover how a consumers credit information is. Helping consumers avoid credit problems if impacted by coronavirus covid19 the consumer data industry association cdia is the voice of the consumer reporting industry, representing consumer reporting agencies including the nationwide credit bureaus, regional and specialized credit bureaus, background check companies, and others. Information in a consumer report cannot be provided to anyone who does not have a purpose specified in the act.
Fair credit reporting act and backgroundcheck questions texas. Inaccurate credit reports directly impair the efficiency of the banking system, and unfair credit reporting methods undermine the. Credit reporting reform act of 1996 public law 104208, the omnibus consolidated. Under the fair credit reporting act fcra, you have the right to request a free report within 60 days if a company denies you credit based on. Learn more about fcra and how it impacts any background checks done by employers. Credit reporting act, which you should have received from the company that sold you the report. Fair credit reporting act disclosure statement in accordance with the provisions of section 604b2a of the fair credit reporting act, public law 91508, as amended by the consumer credit reporting act of 1996 title il, subtitle d, chapter i, of public law. The revisors office cannot provide legal advice or interpretation of maine law to the public. Given californias extrastrength privacy protections and penchant for workplace regulation, it is not surprising that california has peculiarities.
What the fair credit reporting act should teach us about. Providing complete credit reports and criminal background checks for landlords and property managers for more than 30 years. The fair credit reporting act fcra is a federal law that regulates credit reporting agencies and compels them to insure the information they gather and distribute is a fair and accurate summary of a consumers credit history. Fdic law, regulations, related acts table of contents previous page 6500 consumer financial protection bureau appendix c to part 10issuance of official interpretations interpretations of this part issued by officials of the bureau provide the formal protection afforded under section f of the act. Third parties use many different types of credit scores and will not use the equifax 3bureau credit scores to assess your creditworthiness. It is a component of the consumer credit protection act, and requires that credit reporting agencies, banks, and other furnishers of credit report credit information accurately and only use credit reports for. Fair credit reporting regulation v consumer financial. The federal fair credit reporting act fcra is a law that enforces accuracy, fairness, and privacy of information in the files of every consumer credit reporting agency cra. Jan 31, 2020 the fair credit reporting act is a federal law that details how consumer credit information can be collected and used. Section 601 the popular name of the law is the fair credit reporting act or the fcra for short go to section 601. After you take an adverse employment action, you must tell the applicant or employee orally, in writing, or. Definition of consumer credit reporting reform act sapling.