The FCRA (Fair Credit Reporting Act) is a federal law that regulates how consumer reporting agencies use the personal information of consumers. The FCRA contains many substantive compliance requirements for consumer reporting agencies designed to help ensure the accuracy and integrity of the consumer reporting system. Some of the key FCRA requirements include:
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Disclosure of Information: Consumer reporting agencies are required to provide consumers with the information in their own file upon request.
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Permissible Purpose: Consumer reporting agencies are not allowed to share information with third parties unless there is a permissible purpose. There are several permissible purposes outlined by the FCRA, including disclosure of information to help a lender qualify a consumer for a loan or other credit service, and disclosure to employers or potential employers.
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Accuracy and Integrity of Information: The FCRA requires furnishers of information to establish and implement reasonable written policies and procedures regarding the accuracy and integrity of information furnished to all consumer reporting agencies.
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Investigation of Disputed Information: The FCRA requires furnishers to conduct investigations of disputed information and review "all relevant" information provided by consumer reporting agencies about the dispute.
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Consumer Alerts and Identity Theft Protections: Financial institutions and other persons are subject to a number of different requirements under the FCRA to protect consumers from identity theft and other forms of fraud.
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Opt-Out: Consumers can opt-out of having their names and addresses shared with marketers by calling 1-888-5-OPT OUT.
The FCRA also requires agencies to remove most negative credit information after seven years and bankruptcies after seven to 10 years, depending on the type of bankruptcy. The Act protects information collected by consumer reporting agencies such as credit bureaus, medical information companies, and tenant screening.
