If you need legal advice, please consult a qualified attorney. Debt disputes how to dispute a debt with a creditor. The fair credit reporting act and your student loans. The fair credit reporting act of 1970 controls the collection, use, and redistribution of your consumer information. The act is intended to promote accuracy, fairness, and privacy of information used by consumer reporting agencies. Notice and authorization pertaining to consumer reports pursuant to the fair credit reporting act of 1970, 15 u.
Fcra in 1970, recognizing the importance of fair and accurate credit reporting to maintain the efficiency of the banking system and the publics confidence in that system, while at the same time balancing the need to insure that consumer reporting agencies exercise their grave responsibilities with. You learned a little bit about the fair credit reporting act of 1970 in lesson 1 while studying the history of regulation. 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. How the fair credit reporting act regulates big data by. But how exactly does the frca affect your student loan debt. 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 report act or fcra is a federal law of the united states, passed in 1970 and enforced by the united states federal trade commission. The act gives consumers a number of important rights to obtain information about and dispute inaccuracies in their credit files. This title may be cited as the fair credit reporting act. The fcra was originally passed by congress in 1970 to ensure the accuracy and privacy of personal information filed by credit agencies in consumer. Im exercising my right under the fair credit reporting act, section 609, to request further information about items on my credit report. Reporting agencies must correct or delete any incomplete, inaccurate, or unverifiable information. The fcra is chiefly concerned with the way credit reporting agencies use the information they receive regarding your credit history. The fair credit reporting act, as originally enacted, was title vi of pub.
The fcra was enacted in 1970, and it has been amended several times in the ensuing years. Under the fcra, consumers have a right to view the information in their credit file and to dispute inaccurate information. The fair credit reporting act fcra is a federal law that was enacted to promote the accuracy, fairness and privacy of information in credit reporting agency files. Fair credit reporting act federal trade commission. What is the purpose of the fair credit reporting act.
Consumer reporting, a field where information about individuals is aggregated and used to assess credit, tenancy, and employment risks, achieved the status of big data in the 1960s. The fair credit reporting act1 fcra governs the collection, assembly, and use of consumer report information and provides the framework for the credit reporting system in the united states. There are many types of consumer reporting agencies, including credit bureaus and specialty agencies such as agencies. This is a copy of the fair credit reporting act as posted on the website of the federal trade commission.
Credit reporting agencies, once small and local, were consolidating to create a national credit reporting system, and the law offered a consumer. The fcra is chiefly concerned with the way credit reporting agencies use the information they receive regarding your. The fair credit reporting act fcra is legislation embodied in title vi of the consumer credit protection act 15 u. Recognizing the lifealtering power of credit information, congress adopted the fair credit reporting act fcra in 1970 to protect consumers and regulate how credit information is used and disseminated. 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.
I wish to see the original sources of the information reported including, but not limited to, the original contract or service agreement with my signature. Second, the fair credit reporting act of 1970 fcra provides rich lessons concerning possible regulatory approaches for big data. Enacted 26 october 1970 as title vi of public law 91508, 84 stat. Fisher phillips fair credit reporting act obligations. Since 1970, when congress enacted the fair credit reporting act, 15 u. Inaccurate credit reports directly impair the efficiency of the banking system, and unfair credit reporting methods undermine the. The fair credit reporting act, which was originally passed in 1970 and amended in 1996, promotes the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies. 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.
Prepared statement of the federal trade commission. The fair credit reporting act is a federal law that details how consumer credit information can be collected and used. The fair credit reporting act first passed by congress in 1970 and subsequently amended in 1996, the fair credit reporting act fcra set forth the rules by which credit reporting companies must operate and interact with creditors and consumers. Federal trade commission last visited january 4, 2017. The fcra is a part of a group of acts contained in the federal consumer credit protection act3 such as the truth in lending act and the fair debt collection practices act. The fair credit reporting act fcra protects consumers from abusive credit practices while allowing lenders, employers, insurance companies and others to use credit reports to determine credit risk. Congressional findings and statement of purpose 15 u. Various federal agencies enforce and write rules implementing the fcra. Code as published by the government printing office, the format of this text does differ in minor ways from. The fair credit reporting act frca was enacted in 1970 and was last amended in 2003 to protect your credit information and restrict who is able to access it and for what purpose. Release fair credit reporting act of 1970, as amended. Fair credit reporting act1 the fair credit reporting act fcra2 became effective on april 25, 1971.
Fair credit authorization form a summary of your rights. The revisors office cannot provide legal advice or interpretation of maine law to the public. Such inaccuracies can keep someone from obtaining credit, getting a loan, or buying a house. Although staff generally followed the format of the u. The fair credit reporting act fcra is designed to help ensure that cras consumer reporting agencies, including credit bureaus and credit reporting companies furnish correct and complete information to businesses to use when evaluating your application for credit, or insurance, or to employers or prospective employers. An employers guide to the fair credit reporting act. The fair credit reporting act fcra is a federal law that regulates the collection of consumers credit information and access to their credit reports. A summary of your rights under the fair credit reporting act.
Fair credit reporting act legal definition of fair credit. The fair debt collection practices act fdcpa is a federal law that limits the behavior and actions of thirdparty debt collectors who are attempting to collect debts on behalf of another person. The act also aims to guarantee the information about a consumer is accurate. The fair credit reporting act fcra, enacted in 1970, was designed to protect consumers from having inaccurate information of their credit reports. 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. It is neither intended as legal advice nor as a sole educational tool for the employers staff. The table of sections at the beginning of chapter 37 of title. The fair credit reporting act fcra, enacted in 1970, sets standards for the collection, communication, and use of information bearing on a consumers creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living. 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.
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