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FCRA

What is the Fair Credit Reporting Act (FCRA)?

The Fair Credit Reporting Act (FCRA) is a federal law enacted in 1970 to promote the accuracy, fairness, and privacy of consumer information contained in the files of credit reporting agencies. The FCRA was designed to protect consumers from the misuse of their credit information and to ensure that credit reports are accurate and fairly used when determining eligibility for credit, insurance, employment, and other important decisions.

At Legally Noelle Services, LLC, we are committed to helping consumers protect their rights under the FCRA. We assist clients in holding credit reporting agencies and companies accountable for violations that can have serious and lasting impacts on their financial well-being.

Key Protections Under the FCRA

The FCRA provides a range of protections to ensure that consumers’ credit information is handled properly. Some of the most important protections include:

Right to Accuracy: Credit reporting agencies must ensure that the information in your credit report is accurate and up-to-date. If you find errors, you have the right to dispute them and have them corrected.
Right to Privacy: Your credit information can only be accessed by those with a legitimate need, such as potential lenders, employers (with your consent), or insurers.
Right to Notification: If information in your credit report has been used against you, such as being denied credit, you have the right to be notified and to receive a free copy of your credit report to review the information.
Right to Dispute and Correct Errors: If you find inaccuracies on your credit report, you have the right to dispute the errors with the credit reporting agency and the company that provided the incorrect information.

Reporting Inaccurate Information

One of the most damaging violations under the FCRA is the reporting of inaccurate information. Common examples include:

Outdated Information: Reporting old debts or other negative information that should have been removed after the legal time limit has passed.
Mixed Files: Incorrectly mixing your credit information with that of another person, leading to inaccurate credit reports.
Incorrect Account Details: Reporting wrong balances, account statuses, or payment histories that can lower your credit score and affect your financial opportunities.

Failing to Investigate Disputes

When consumers dispute errors on their credit reports, credit reporting agencies are required to investigate and correct any inaccuracies. Violations include:

Inadequate Investigations: Failing to conduct a thorough investigation into your dispute and simply verifying the incorrect information as accurate without proper review.
Ignoring Disputes: Not responding to or addressing disputes within the required 30-day timeframe, leaving incorrect information on your credit report.

Privacy Violations

The FCRA strictly regulates who can access your credit information. Common violations include:

Unauthorized Access: Allowing someone to access your credit report without a permissible purpose, such as for marketing or unrelated inquiries.
Sharing Information Without Consent: Providing your credit information to employers or others without your explicit consent.

Failing to Notify of Adverse Actions

If a company takes adverse action against you based on your credit report, such as denying you a loan, insurance, or employment, they are required to notify you. Violations include:

Failure to Provide Notice: Not informing you that an adverse action was taken due to information in your credit report, denying you the opportunity to review and correct the information.
Not Providing a Free Credit Report: When an adverse action occurs, you are entitled to a free copy of your credit report, which some companies fail to provide.

Reporting Accounts That Are Not Yours

Another serious FCRA violation is reporting debts or accounts that do not belong to you, often due to identity theft or errors by the credit reporting agencies.

Identity Theft Cases: Failing to properly address and correct fraudulent accounts or debts that appear on your credit report due to identity theft.
Mixed Accounts: Reporting another person’s account information on your credit report, leading to confusion and damage to your credit.