The Fair Credit Reporting Act (FCRA)

The Fair Credit Reporting Act (FCRA) is a federal law that governs how credit information is collected, used, and shared. It aims to ensure the accuracy, fairness, and privacy of consumer credit information.

Consumer Rights Under the FCRA

1. The Right to Access Your Credit Report: You have the right to obtain a free copy of your credit report from each of the three major credit bureaus once every 12 months.
2. The Right to Dispute Inaccurate Information: If you find errors on your credit report, you have the right to dispute them with the credit bureaus. The bureaus are required to investigate disputes and correct or remove inaccurate information.
3. The Right to Know If Your Credit Report Has Been Used Against You: If a lender denies your credit application or takes other adverse action based on your credit report, they must inform you and provide the contact information of the credit bureau that provided the report.
4. The Right to Limit Unsolicited Credit Offers: You can opt out of receiving pre-approved credit offers by contacting the credit bureaus or calling 1-888-5-OPTOUT.

Protecting Your Credit

Understanding your rights under the FCRA is crucial for protecting your credit. By regularly reviewing your credit reports, disputing errors, and limiting unsolicited credit offers, you can maintain accurate and fair credit reporting.