Credit Repair and Consumer Rights Under the FCRA
The FCRA or the Fair Credit Reporting Act is a federal law that was originally enacted by Congress in 1970 to promote the fairness, accuracy and the privacy of personal information compiled on credit reports by credit reporting agencies.
It has often been amended to further protect consumers and the last amendment took place in December of 2003.
Credit reporting agencies are entities that are in the business of collecting and compiling credit information on consumers.
The information is used for credit evaluation and other purposes.
The main credit reporting agencies are TransUnion, Equifax and Experian.
The Fair Credit Reporting Act allows a consumer to dispute and challenge any information found on a credit report on the basis of completeness and accuracy.
The credit bureaus have 30 to 45 days after a dispute to prove the ownership of the credit being reported.
If they are unable to verify the accounts it must be removed from the report.
The credit reporting agencies have a number of other responsibilities under the FCRA, which include providing a credit report to the consumer.
Prior to 2003 the consumer was required to pay for this report but an amendment in 2003 has given consumers the right to receive one free credit report from each of the main credit reporting agencies one time per year.
All the consumer has to do is request it.
If credit is denied on the basis of what is contained in a report, the bureau with the questionable information must also provide a report.
A consumer has the right to dispute any information on his or her report.
As per the FCRA if information is deleted as a result of the consumer's dispute the credit reporting agency cannot reinstate the negative information without notifying the consumer in writing.
The FCRA also limits the amount of time that negative information can be retained on the report.
Typically most must be removed within 7 years from the time of delinquency but bankruptcies can stay on for 10 years and tax liens can stay on for 7 years after they are paid off.
It has been estimated that as many as 40% of all disputed information is not properly verified within the time limit.
A consumer can use that fact for their benefit.
However, be aware that truthful and accurate information should not be disputed, as truthful and accurate information should remain on the report even if it is negative.
A FCRA gave consumer the right to dispute inaccuracies and errors and to do the work to repair their credit.
Credit repair takes time and patience but it can be accomplished by doing it yourself or by hiring a professional company that specializes in credit repair.
It has often been amended to further protect consumers and the last amendment took place in December of 2003.
Credit reporting agencies are entities that are in the business of collecting and compiling credit information on consumers.
The information is used for credit evaluation and other purposes.
The main credit reporting agencies are TransUnion, Equifax and Experian.
The Fair Credit Reporting Act allows a consumer to dispute and challenge any information found on a credit report on the basis of completeness and accuracy.
The credit bureaus have 30 to 45 days after a dispute to prove the ownership of the credit being reported.
If they are unable to verify the accounts it must be removed from the report.
The credit reporting agencies have a number of other responsibilities under the FCRA, which include providing a credit report to the consumer.
Prior to 2003 the consumer was required to pay for this report but an amendment in 2003 has given consumers the right to receive one free credit report from each of the main credit reporting agencies one time per year.
All the consumer has to do is request it.
If credit is denied on the basis of what is contained in a report, the bureau with the questionable information must also provide a report.
A consumer has the right to dispute any information on his or her report.
As per the FCRA if information is deleted as a result of the consumer's dispute the credit reporting agency cannot reinstate the negative information without notifying the consumer in writing.
The FCRA also limits the amount of time that negative information can be retained on the report.
Typically most must be removed within 7 years from the time of delinquency but bankruptcies can stay on for 10 years and tax liens can stay on for 7 years after they are paid off.
It has been estimated that as many as 40% of all disputed information is not properly verified within the time limit.
A consumer can use that fact for their benefit.
However, be aware that truthful and accurate information should not be disputed, as truthful and accurate information should remain on the report even if it is negative.
A FCRA gave consumer the right to dispute inaccuracies and errors and to do the work to repair their credit.
Credit repair takes time and patience but it can be accomplished by doing it yourself or by hiring a professional company that specializes in credit repair.
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