Understanding the Fair Credit Reporting Act

Credit reporting agencies are legally required to gather and report consumer information with the utmost accuracy. Combined, the three largest credit reporting agencies – Experian, TransUnion, and Equifax – keep files on hundreds of millions of Americans and issue billions of credit reports each year. This voluminous amount of information makes errors inevitable. The Fair Credit Reporting Act (FCRA) gives consumers the power to detect and dispute inaccuracies in their credit reports.

How the FCRA Was Created

Fair Credit Reporting Act

Congress adopted the FCRA in 1970 in order to regulate how consumer reporting agencies (CRAs) as well as the businesses and individuals that give information to CRAs use, collect and disseminate consumer credit information. Consumers should be aware of their rights under the FCRA so they can take action when their credit information is misused and/or misreported.

Inaccurate information in your credit report may result in being denied a car loan or a landlord refusing to rent to you. The FCRA requires Experian, Transunion, and Equifax to provide you with a free copy of your credit report once every 12 months upon your request. The FCRA also requires that consumers be given notice on the handling and reporting of their credit information.

What are Some Common FCRA Violations by Credit Reporting Agencies?

Withholding notice is a common violation under the FCRA and may occur under the following circumstances:

  • When someone fails to notify you that they made a negative decision based on your credit, such as refusing to hire you or give you a loan
  • A creditor does not provide you with your credit score when it was used as part of any credit decision
  • A creditor fails to notify you that it supplied negative credit information to a CRA
  • A creditor fails to notify you of your right to obtain a free credit report
  • When a creditor or someone using your credit information refuses to disclose the source of the information, or
  • A creditor fails to notify you of your right to dispute inaccurate credit information

This is just a small fraction of the ways in which the FCRA can be violated and makes clear how important it is for consumers to be aware of their rights so they can protect themselves from abusive creditors and irresponsible CRAs. The large array of damages recoverable under the FCRA will make violators think twice before they disregard your rights under federal law.

The Law Offices of Jibrael S. Hindi is On Your Side

Attorney Jibrael S. Hindi of The Law Offices of Jibrael S. Hindi has dedicated his legal career to protecting consumer rights. If you believe your rights have been violated by a credit reporting agency, he can help you understand the actions you can take to achieve justice.

Our law firm has helped many consumers in Fort Lauderdale resolve issues with credit reporting agencies, creditors, retailers, and other companies. Find out how we can help you by calling (844) JIBRAEL for a free consultation or complete our contact form. We won’t charge a cent until we win your case!