CREDIT REPAIR SOLUTIONS AND THE FAIR CREDIT REPORTING ACT (FCRA)
Credit Repair Solutions and the Fair Credit Reporting Act (FCRA)
Our credit scores have become more important than ever for securing loans, mortgages and credit cards, which is why people sometimes need help building up their credit score or learning how to clean up errors on their credit reports before they fill out a loan application.
Far too many people fail to recognize how important their credit history is to their overall financial health. The interest lenders charge and any loan applications you file are impacted by your credit history, which is why errors on your credit report can become costly over time.
How Does the FCRA Impact Your Credit Score?
The Fair Credit Reporting Act or FCRA is a federal law that regulates the collection of consumer credit information and access to credit reports. This federal law governs the collecting and reporting of consumer credit info, including how the credit bureaus may obtain the information, for how long they may keep it, and how they can share it with other entities.
In short, the FCRA is instrumental in the following:
- Regulation of credit bureaus’ actions
- Regulation of information businesses receive about individual consumers
- Providing rights to consumers
Consumers can reference the provisions of the FCRA by visiting https://www.consumer.ftc.gov/articles/pdf-0111-fair-credit-reporting-act.pdf.
Not just anyone who wants to see your credit report can do so. The FCRA places restrictions on who can view your credit report and when. Typically, the consumer initiates a transaction that gives consent to have their report evaluated by the entity they wish to borrow money from.
How Credit Bureaus Can Damage Your Credit Report
Sometimes, credit bureaus will refuse to remove information on your credit report that you know is inaccurate. While this can be frustrating, you can respond by filing a claim to report a violation of the Fair Credit Reporting Act, which may also entitle you to compensation for any financial losses you incurred due to that error on your report.
Reporting Inaccurate Information
There are several ways that credit bureaus or creditors can violate the FCRA, and one clear violation is reporting information they know or should know isn’t accurate. These include:
- Information that is outdated
- Reporting older debt as new ones
- Reporting information that’s more than 7 years old
Failing to Investigate Your Claim
If you report inaccurate information and file a credit dispute, the credit bureaus must investigate it. Unless they can verify the information they listed in your report, they’re required to correct it within 30 days. Violations can include:
- Failing to report any account listed as identity theft
- Failing to notify creditors about your error report
- Failing to delete incorrect information in a timely manner
Filing Claims for FCRA Violations
The law is on your side when an error on your credit reports causes harm. The FCRA is on the books to help protect you, so use it to your advantage to ensure the major bureaus are reporting accurately. If you’re looking for credit repair solutions, you should also consider consulting with an experienced credit repair attorney who can help you decide which options work best for your situation.
How Can Credit Repair Services Help You?
If you believe your credit score is hurting you financially, consider finding a skilled attorney who has been working on providing consumers with credit repair solutions. Before removing a negative item on your report, credit reporting agencies require you to send formal dispute letters, and it’s a complex process. It’s best not to attempt this alone. The right credit repair attorney can work to:
- Obtain your credit report and create a plan
- Work to remove inaccurate or unfair negative items from their client’s credit reports
- Leverage legal standard on your behalf
- Keep this process moving forward until your report is accurate
It’s also important to understand that a skilled credit repair attorney knows how the law applies to credit repair solutions, and that legal knowledge can help them guide you through this process.
Fort Lauderdale FCRA Attorney Protects Consumers’ Rights
Attorney Jibrael S. Hindi of The Law Offices of Jibrael S. Hindi dedicates his legal practice to protecting the rights of consumers in South Florida. We are a boutique law firm focused on enforcing state and federal consumer protection laws like the Fair Credit Reporting Act. You have the right to take action against any company that violates your rights. You can trust our team to stand up for you and demand justice when you have been wronged.
Call (844) 542-7235 for a free consultation or complete our contact form to learn whether you have a case. You won’t pay us a cent until we recover funds for you!