A Summary of Your Rights Under the Fair Credit Reporting Act

To request a free credit file disclosure, commonly called a credit report, visit AnnualCreditReport.com.

The Fair and Accurate Credit Transactions Act of 2003, which amended the Fair Credit Reporting Act, allows consumers to request this free credit file disclosure once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion. AnnualCreditReport.com is the centralized source for consumers to request annual free credit file disclosures. It is the only website authorized to process requests for annual free credit file disclosures authorized by law.

Remedying the Effects of Identity Theft

A summary of consumer rights under the Fair Credit Reporting Act to remedy the effects of identity theft.

Identity Theft information from the Federal Trade Commission

Identity Theft information from the Department of Justice

Credit Reporting Questions Most Frequently Asked by Consumers

• What’s in a consumer credit report?
  
• Do credit reports contain information about a consumer's personal lifestyle?
• Are there any laws that regulate credit bureaus?
• How long does negative (but accurate) information remain in a consumer's credit file?
• How can a consumer correct an error in his or her file?
• What about companies that claim they can improve a consumer’s credit report for a fee?
• How accurate is the information in a credit report?
• Is consumer service a priority for the credit reporting industry?
• How private is the information in a credit report?

What’s in a consumer credit report?       

The report consists of four types of information. First, identifying information is listed at the top of the report, such as name, last reported address, marital status, Social Security Number, date of birth, spouse's name, number of dependents, previous address, and employment information. This is a security measure to help ensure the right credit report is sent to the right person.

Next is a listing of the consumer's credit information including credit account numbers, the creditor's name, the amount of last payment, the credit limit of the account and the timeliness of the credit payments. This is the most important segment of the report because creditors like to see timely payments of credit card and loan obligations.

Third, on some reports there is a listing of public record information. This includes tax liens, court judgements, and bankruptcies. These are important to a lender because they are legally mandated debt obligations.

Finally, there is an inquiry section that notes all those creditors that have reviewed a copy of the credit report. This section is very important for consumers to review when they receive a copy of their report because it serves as an audit trail to ensure no unauthorized parties have accessed the report.

Do credit reports contain information about a consumer's personal lifestyle?

Absolutely not. Credit reports do not contain any information about a person's character, lifestyle, religion, national origin, political affiliation, sexual preferences, friends, or relatives. Nor do credit bureaus collect or transmit data on an individual's medical history, checking or savings accounts, brokerage accounts or similar financial records.

Are there any laws that regulate credit bureaus?

The Fair Credit Reporting Act is the federal law that regulates the credit reporting industry. It states that consumers have the right to know the contents of their own credit records and the right to challenge the accuracy of information and have it reverified, updated, or removed. It also limits the time negative information can be kept on a credit record and assures that only persons with a legal permissible purpose will have access to a consumer's credit history.

There are numerous state laws that cover credit reporting as well.

How long does negative (but accurate) information remain in a consumer's credit file?
Bankruptcies remain in a credit report for ten years, other information stays for seven years. In the case of successfully completed Chapter 13 bankruptcies, the credit reporting industry maintains the information for only seven years.

How can a consumer correct an error in his or her file?

If an error has cropped up in a consumer’s credit report, the credit bureau should be notified immediately. The Fair Credit Reporting Act, the federal law that regulates credit reporting activities, outlines the steps to be taken in the reinvestigation of any possible inaccuracies. The credit bureau will reverify the item in question with the creditor at no cost to the consumer. The law requires that reinvestigations be responded to by a creditor within 30 days. After the reinvestigation is complete, the credit reporting agency notifies the consumer of the outcome. If information in the report has been changed or deleted, the consumer is also sent a copy of their revised report.

What about companies that claim they can improve a consumer’s credit report for a fee?

The Federal Trade Commission (FTC) cautions consumers to be wary of companies that make claims indicating they can "repair" your credit and allow you instant access to credit. These companies, called credit clinics or credit doctors, don't do anything for consumers that they cannot do for themselves at little or no cost. In addition, these organizations generally can't live up to their promises. Meanwhile, you could be out several hundred or thousands of dollars. Beware of any organization that offers to create a new identity and credit file for you. The FTC and attorneys general have filed actions against those who pursue these fraudulent practices.

Here are some warning signs that the FTC and others say consumers should look out for to determine if they might be dealing with a credit clinic:

• An organization that guarantees to remove late payments, bankruptcies, or similar information from a credit report;
• An organization that charges more than a minimal fee to repair credit;
• A company that asks the consumer to write to the credit bureau and repeatedly seek verification of the same credit account information in the file, month after month, even though the information has been determined to be correct; and
• An organization that is reluctant to give out their address or one that pushes a consumer to make a decision immediately.

For a helpful brochure about credit clinics, you can write to the Federal Trade Commission, Sixth and Pennsylvania Avenues, N.W., Washington, D.C. 20004 and request a brochure titled "Credit Repair: Self Help May Be Best."

How accurate is the information in a credit report?

The fundamental goal of Consumer Data Industry Association, members is to ensure the maximum possible accuracy of credit information provided to credit grantors. CDIA members have a vested interest in the accuracy of the information it protects. The less accurate the information, the less value it is to those who grant credit.

Considering the enormous volume of credit information that is transmitted in the U.S. — 4.5 billion pieces of information are updated in consumer credit files each month — the industry has an extraordinary record of accuracy. This has been attested to by the Federal Reserve Board and others who track consumer financial data.

Is consumer service a priority for the credit reporting industry?
Yes. The industry believes consumers have a right to responsive service when checking and reverifying information in their credit reports. The four reporting systems have added toll-free phone lines and hired more than 1,000 employees to provide customer service. Our commitment to consumer service has resulted in numerous new policies adopted by the credit reporting industry to improve response time to consumers, enhance the privacy of the file information and reduce the potential of identity theft. The success of these initiatives has been validated since many of them were later codified in law.

How private is the information in a credit report?
The Fair Credit Reporting Act, grants credit report access to companies which have a legal "permissible purpose." The FCRA specifies those purposes as the granting of credit, the collection of a debt, the underwriting of insurance, employment purposes, for issuing a license as required by some government agencies or for a legitimate business transaction between a business and a consumer. Obtaining a credit report under false pretenses, or improper use of a credit report is a violation of federal law. When privacy violations occur, the credit reporting industry notifies the appropriate law enforcement authorities.