Things Must Know About Fair Credit Reporting Act (FCRA)

April 16, 2015

This Fair Credit Reporting Act, (aka the FCRA), is a federal law of United States which regulates the dissemination, collection and use of  consumer information – namely, credit information. Together with Fair Debt Collection Practices Act or FDCPA, it creates the base of the credit rights of the consumer in United States.

Credit Reporting Agencies (or CRAs) are units that are tasked to disseminate and collect consumer information, to use for the evaluation of credit, as well as other purposes – like employment. The Credit Bureaus is a consumer agency that holds the credit reports of the consumers in databases. Credit Reporting Agencies possess a number of responsibilities under Fair Credit Reporting Act, including the following:

Nationwide Credit Reporting Agencies

Aside from the three credit reporting agencies (CRAs) , FCRA classify many companies as “nationwide specialty consumer reporting agencies” who produce reports of individual consumers, in order to measure one’s financial credibility to be granted credit; based on Section 603 of FCRA, the quoted term means that the reporting agency that maintains information on file, does business relating to the following:

Aside from selling consumers’ files from credit reports, FCRA also delivers an annual free report (upon consumer’s request), after an item dispute has been completed. Also, if one’s credit report reveals a collection agency, like arrow financial, is harassing you, you can go to a credit repair site to learn how to end it.

The Creditors

This term is defined by FCRA as the company that supplies the information to the credit reporting agencies. Normally, these are called creditors with which the consumer has kind of credit agreement.

Other samples of information suppliers are municipal or state courts, collection agencies, present and past bonders and employers. Lenders also have a very important role in ensuring the accuracy of the credit reports. Under FCRA, these information suppliers may report the consumers’ credit information, using the following guidelines:

Those who use information for insurance, credit or even employment purposes, have the responsibilities under FCRA:

The Employers

Under FCRA, employers should follow the main procedures in using credit reporting agencies, in order to obtain consumer information regarding prospective employees – for the purpose of employment. The reports should include driving history & records of motor vehicle; if you have a debt from a collection agency (for example, like cbe group); the report should include credit checks & background criminal information, as well. The CFPB issued FCRA updated notices that consumer and credit reporting agencies should be used in administering background checks for job applicants or employees.

This act protects you by asking credit reporting agencies with the following:

This Fair Credit Reporting Act (aka FCRA) can help us ensure the privacy, accuracy and fairness of the information that is kept by the reporting agencies. Under this law, we have rights, and it is of the utmost importance to be aware of them & how they affect us. If you are experiencing an issue that falls into the credit category, instead of settling this on your own, try to speak with an attorney. They are the ones who can help you and provide the information that you need.