Discover Credit Repair And Consumer Rights Under The FCRA
In 1970 Congress enacted a federal law to guard consumers from inaccuracies on their credit reports. This law is recognized as the Fair Credit Reporting Act or the FCRA and it was approved to protect consumers and encourage the fairness, accuracy and privacy of personal information compiled by credit reporting agencies on credit reports.
Credit reporting agencies are companies that are in the industry of collecting, compiling and selling information on consumers for the goal of credit evaluation. The three major credit-reporting agencies are TransUnion, Equifax and Experian.
The Fair Credit Reporting Act allows a consumer to argue and object to any information found on a credit report on the foundation of completeness and accuracy. The credit bureaus have 30 to 45 days after a dispute to prove the ownership of the credit being reported. If they are unable to substantiate the accounts it must be removed from the report.
The credit reporting agencies have a number of other tasks under the FCRA, which include providing a credit report to the consumer. Prior to 2003 the consumer was required to pay for this report but an amendment in 2003 has given consumers the right to receive one free credit report from each of the main credit reporting agencies one time per year. All the consumer has to do is demand it. If credit is denied on the basis of what is contained in a report, the bureau with the disputed information must also provide a report.
Oftentimes when a negative mark is disputed it is removed from the account. Under the FCRA the disputed information cannot be reinstated without the credit bureau contacting the consumer in writing.
The FCRA also defined a limit as to how long negative information can stay on a report. In general if must be removed within 7 years from the occasion of delinquency with the exception being a bankruptcy that can last for 10 years and a tax lien that can stay on the report for 7 years after it is paid off.
It has been projected that as many as 40% of all doubtful information is not properly verified within the time limit. A consumer can use that fact for their advantage. However, be aware that correct and correct information should not be disputed, as truthful and true information should remain on the report even if it is damaging.
Credit repair on credit reports can be accomplished due to the rights given by the FCRA. The consumer can do credit repair themselves or there are also professional companies that specialize in credit repair. It takes time and patience to be victorious at credit repair but it can be accomplished.