Understanding The Fair Credit Reporting Act (FCRA)
The Fair Credit Reporting Act, also known as the FCRA, is a federal law that ensures information found in your consumer credit file is accurate and fair. The law further regulates how agencies are allowed to collect and access your data, in addition to how it can be shared.
The purpose of the FCRA is to help consumers understand what actions they can take regarding their credit report. There are organizations that can use your information for various purposes. These include banks that want to view your credit history before they offer you a mortgage, or a credit card agency that reviews your credit report after you’ve applied for a credit card. Essentially, whenever you request some form of loan or credit, the company issuing that credit will check your credit report to determine how creditworthy you are. The terms you receive are often based on your credit score and information available in your credit report.
How does the FCRA help consumers?
The FCRA affords consumers the ability to find out what information is in their credit file. It can further help you determine what information is being used against you to deny you opportunities for credit. For those who believe that there is inaccurate information in their credit file, there is a chance to dispute claims made against them. In addition, you can also place a freeze on your credit report. This ensures potential lenders are not able to check your report until after the freeze is lifted. You have the ability to provide a specific lender with a pass code to access your report, but it expires after one use.
Disputing errors with a credit reporting agency
If you file a dispute with your credit reporting agency, they will have to investigate the matter. They will contact the creditor who filed an account on your report and the creditor will either tell them that the account is accurate or inaccurate. Depending on the details of the investigation, the account may be removed from your credit report. If not, then the credit reporting agency has determined that the account is valid and should remain on your report.
Suing a credit reporting agency
If you believe that the credit reporting agency has made a mistake, you can file a lawsuit against it. If you dispute a claim that you know is false, and the credit reporting agency does not remove the account from your report, you can file a lawsuit under the FCRA. The FCRA protects consumers from false information appearing on their credit reports. You can find an attorney who will advocate on your behalf to sue the credit reporting agency. Our attorneys provide these services to clients.
Talk to a Columbus, OH, FCRA Attorney Today
The Columbus FCRA attorneys at Kohl & Cook Law Firm, LLC, represent the interests of consumers who have false information on their credit reports. Call our office today to schedule an appointment, and we can begin taking steps toward clearing up the problem right away.
