The Fair Credit Reporting Act

Cape Coral Consumer Rights Attorney

The collection, dissemination, and use of consumer information, including consumer credit information are regulated by The Fair Credit Reporting Act (FCRA), a federal law passed in 1970. Combined with the Fair Debt Collection Practices Act (FDCPA), it constitutes the basis of consumer rights in America.  The U.S. Federal Trade Commission enforces the FCRA. 

Your Credit Report

Information about consumers is generally collected and disseminated to others by consumer reporting agencies. This information, the credit report, is held in a database and is used for credit evaluation and other purposes, such as employment. Under the FCRA, credit bureaus have certain responsibilities concerning a person's credit report. They must give the credit report information held in their files about a consumer to him or her and, when this information is disputed, they must take actions to verify its accuracy. Consumers are allowed to receive one free credit report per year.

If, because of a consumer's disputing it, negative information is removed from the report, the credit bureau may not put that information back into the file without notifying the consumer within 5 days. Also credit reporting agencies may not keep negative information on file for an excessive period of time. Negative information includes late payments, tax liens, judgments, and bankruptcies. The FCRA delineates how long negative information may be held on a consumer's credit file. Generally, the rule is 7 years from the date of the delinquency except for bankruptcies. Tax liens may only be held for 7 years from the date they were paid.

Those companies who supply information to credit reporting agencies are information furnishers, such as credit card companies, car finance companies, mortgage institutions, collection agencies, state and municipal courts, employers, and bonders. These information furnishers must follow FCRA guidelines in reporting their information about consumers, such as complete and accurate information. When information is disputed by consumers, they must correct their error or explain why the information is correct, within 30 days after receiving the disputed information. Also, they must inform consumers when negative information is going to be placed on a credit report within 30 days.

Your Rights under the FCRA

Under the FCRA, a consumer may recover damages when there has been a willful noncompliance with its laws by a credit reporting agency or information furnisher. Consumers may file suit in a state or federal court to have the FCRA enforced.

Get Help from a Cape Coral Consumer Rights Lawyer

If you live in Cape Coral, Ft. Myers, Bonita Springs, Lehigh Acres, or anywhere in Lee County, Collier County, or Charlotte County and your rights have been violated under the FCRA, you may have grounds for a legal action against the responsible party. Contact me for a free consultation about your credit report situation so that we may determine what steps should be initiated on your behalf.