What is the Fair Credit Reporting Act?

The Fair Credit Reporting Act (FCRA) is a federal law that promotes the accuracy, fairness, and privacy of consumer information contained in credit reports. The law was enacted in 1970 and regulates the collection, dissemination, and use of consumer credit information. In the state of New York, the FCRA is enforced by the New York Department of Financial Services. The FCRA gives consumers the right to access and file disputes concerning their credit information. This includes the right to view any information held in their credit report and any information reported by credit bureaus, loans, and creditors. Consumers also have the right to question any inaccurate or incomplete information, and to dispute any information that they believe to be incorrect. In addition, the FCRA also requires credit bureaus to notify consumers about any negative information that is being reported on their credit history. This notification includes the name of the organization reporting this negative information, the type of information being reported, and the potential consequences for the consumer. Finally, the FCRA also prohibits credit bureaus from reporting some types of information, such as bankruptcies that are over seven years old or civil suits, judgments, or tax liens that have been satisfied or released for more than seven years. This ensures that consumers are not held responsible for information that is no longer relevant to their current credit standing.

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What is the Fair Credit Reporting Act?

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