Bankruptcy Law: Fair Credit Information Center

The Fair Credit Reporting Act (FCRA) regulates how credit information furnishers and credit reporting agencies handle financial information. Information furnishers include creditors and debt collection agencies. Credit reporting agencies include the “big three” – Equifax, Experian and TransUnion – as well as specialty consumer reporting agencies.

Credit reporting agencies are for-profit companies that collect our information and sell it to companies that evaluate our credit report information for purposes such as car purchases, credit cards, mortgages, and so forth. If you’ve ever requested a loan from a bank, your credit information was disseminated by one or all of those bureaus to the bank. Information can include late payments, tax liens, legal judgments, bankruptcies, and so on. It is important to check your credit report with each of the big three once a year to ensure the information they are reporting about you is correct.

Under the Fair Credit Reporting Act, credit bureaus must follow certain regulations:

  • Provide consumers with information about themselves and verify information if their accuracy is disputed. As a consumer, you are entitled to a free credit report once a year. You can obtain your free credit report via www.annualcreditreport.com
  • A credit bureau may not publish negative information about a consumer for more than seven years. Exceptions include tax liens, which are removed seven years after they are actually paid, and bankruptcies, which are removed after ten years.
  • Once you’ve disputed information in your credit report, a credit bureau has to investigate your claim.

One thing is clear, especially in light of the way credit has dried up in the wake of the Great Recession. Without very good credit, you can’t buy or rent a home, purchase or lease a car, or get credit cards to go about the business of living. Poor credit can also cost you employment and educational opportunities. Having a good credit score is more important than ever.

It’s one thing to have bad credit because you didn’t keep up your end of the bargain when you borrowed money. It’s another thing altogether when your credit report has false information and you can’t get it fixed. Considering that good credit is so important to the quality of our lives, it’s not just unjust; it’s why the Fair Credit Reporting Act (FCRA) was enacted into law. Understand that if false information is reported on your credit report, you can take legal action against debt collectors, agencies, or creditors that deny your requests to fix it.

The attorneys at Lemberg & Associates can help you exercise your rights under the Fair Credit Reporting Act. Simply complete the form to the right for a free case evaluation.

What would you like to do?

Learn about common credit report problems? Read more

Learn how and why to check your credit reports? Read more

Learn how to correct mistakes in your credit reports? Read more

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