In 1971, Fair Credit Reporting Act (FCRA) was established by Federal Trade
Commission. Its sole function was to defend customer rights. It defines who
and how a consumer credit report
can be accessed. Its significance is that a consumer can review their credit
reports and dispute for correcting any
erroneous information.

Consumer Rights Defined by FCRA

In the past a consumer was mistreated as not being able to access their reports.
They were unable to carry out proper financial management. FCRA provided rights
about your credit report handling and management. All the credit bureaus that
collect credit information about must not violateany of the following rules
provided by FCRA.

Report access

Your credit report can only be accessed by the creditors with a "acceptable
reason". Whenever you establish a business with a credit company you allow them
to check your credit report.

Written consent

Written consent is required for the credit reports that need to be given to the employers. In it your medical record can only be included by your written approval.

Personal access

A consumer has a right to get a copy of your credit report. This credit report
includes all the inquiries that have been made. The inquiries include both the
soft and hard inquiries.

Credit denial

In case of a denial for a new credit line or service, a company must tell you
why and how to contact the credit bureau
from which the report was acquired. By doing so, you will be able to dispute
on errors.

Dispute inaccuracies

If errors appear on your credit report, like an unknown account you have a
right to dispute such errors. In a dispute case CRAs take 30 days to investigate
the error. If the dispute or wrong information stated by you comes out to be
accurate then it is placed on the credit report otherwise the error is removed.
The CRA stands responsible to tell all the credit bureaus about this error and
to get it removed.

Outdated information

Most of the times all negative information regarding your delinquent or collection
accounts stay on the report for 7 years where as the bankruptcy
information remains on the report for a period of 10 years.

Remove Yourself from the Credit Bureaus marketing lists

Many companies get your address information to send you credit
card offers etc. If you don't want such mails you have a right to have yourself
removed form any marketing list which is sold to marketing agencies.

Seek damages

You have right to sue any company for damages if any one accesses your credit
report with whome you are not doing any buisness or without your written approval.
You can also sue if a company violates any of your protection laws provided
by FCRA.