Legal Provisions for You in the Fair Credit Reporting Act

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You are entitled to repair your own credit under the Fair Credit Reporting Act (FCRA).This includes challenging information contained in that report. The FCRA also authorizes credit bureaus to research all consumer disputes arising out of credit report challenges. These investigations, it is stipulated, should take no more than thirty days after which any details found to be unsubstantiated must be removed with immediate effect.

What FRCA Guarantees Consumers

Within two months of having a bid for employment, credit or insurance rejected, applicants reserve the right to have access to a free credit report. The company rejecting such an application is under obligation to name the credit bureau from where the credit scores were sourced. Under normal circumstances, one of the three main nation wide credit recording companies, TransUnion, Experian and Equifax are used.

Reports indicate that almost eighty per cent of the total number of credit reports contains some mistakes or details that are incorrect. Consequently, the FCRA stipulates that credit reporting companies alter the mistakes to present the correct information. This should follow several steps as follows

•    Inform the credit reporting companies in writing about the mistakes or inaccuracies.
•    Supply supporting documents to qualify the claims.
•    Present details in an itemized manner that will justify the inaccuracy noted in the report.
•    Supply a copy of the credit report being referred to with highlights of the challenged statements.
•    Request that the inaccuracies be corrected and errors deleted from that credit report.
•    Retain an extra copy of each document that you submitted to the credit reporting company.

The FRCA also directs the credit recording company to pass on the supporting documents to the intuition or company that came up with the initial doubtful information.  This institution on its part is expected to scrutinize and provide feedback to the credit recording company. Should the information be proved as inaccurate, it has to be corrected with such errors being presented to the three most important credit bureaus.

Similarly, the FCRA compels the agency dealing with your credit report to send you the results in written form in addition to a duplicate of your credit report for which you should not be charged. These may also be send to any institution that had asked for your credit report in the previous six months. 

The FCRA was made so as to ensure that your individual rights are protected. This also allows everyone an opportunity to rectify any erroneous details in their credit report. You can take advantage of the correct application of this act to safeguard your financial prospects.


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