FCRA & consumer Rights

The Fair Credit Reporting Act (FCRA) is a federal law designed to promote accuracy, fairness, and privacy in the handling of consumer information by credit bureaus and other consumer reporting agencies. These agencies may collect and share information related to credit history, rental history, employment, medical records, or other financial data.

Below is a summary of your key rights under the FCRA.

Your Right to Be Informed

You must be notified if information in your consumer report is used against you. If your application for credit, housing, insurance, or employment is denied—or another adverse decision is made—based on a consumer report, you have the right to know which reporting agency provided the information.

Your Right to Access Your Information

You have the right to know what information is contained in your consumer report. You may request a copy of your file from a consumer reporting agency, often at no cost. You are entitled to a free report if:

• An adverse action was taken against you based on your report

• You are a victim of identity theft

• Your report contains inaccurate information due to fraud

• You are unemployed and seeking employment

• You receive public assistance

All consumers are also entitled to one free report every 12 months from each nationwide credit bureau.

Your Right to a Credit Score

You may request your credit score from consumer reporting agencies that provide scores used in real estate or lending decisions. In some mortgage transactions, lenders are required to provide credit score information at no cost.

Your Right to Dispute Inaccurate Information

If you believe information in your report is incomplete or inaccurate, you have the right to dispute it. Consumer reporting agencies must investigate valid disputes and correct or remove inaccurate or unverifiable information, typically within 30 days.

Limits on Reporting Old Information

In most cases, negative information that is more than seven years old cannot be reported. Bankruptcies generally cannot be reported after ten years.

Limited Access to Your Report

Access to your consumer report is restricted. Only individuals or organizations with a legitimate purpose—such as lenders, landlords, employers, or insurers—may obtain your information as permitted by law.

Employer Access Requires Consent

Your written consent is generally required before a consumer reporting agency can provide your information to an employer or prospective employer.

Opting Out of Prescreened Offers

You have the right to opt out of unsolicited prescreened credit or insurance offers based on your consumer report. Instructions for opting out must be included in such offers.

Security Freezes and Fraud Alerts

You may place a security freeze on your credit report to prevent unauthorized access. This helps protect against identity theft but may delay credit approvals you initiate.
Alternatively, you may place a fraud alert on your report at no cost. Initial fraud alerts last one year, while extended fraud alerts for identity theft victims last seven years.

Right to Seek Legal Action

If a consumer reporting agency, information provider, or user of consumer reports violates the FCRA, you may have the right to seek damages through legal action.

Additional Protections

Identity theft victims and active-duty military personnel may have additional rights under federal law.

For more information about your rights under the FCRA, visit the Consumer Financial Protection Bureau website.