Fair Credit Reporting Act


Also found in: Legal, Acronyms, Wikipedia.

Fair Credit Reporting Act

A federal law intended to remedy abuses by credit reporting agencies. The law is enforced by the Federal Trade Commission,which maintains information on its Web site, www.ftc.gov. Generally, the law prohibits reporting erroneous or outdated credit information. The following adverse information cannot be reported:

• Civil suits, civil judgments, or arrest records older than 10 years or the statute of limita- tions, whichever is longer;

• Paid tax liens older than 7 years. (Note: Credit reporting bureaus and the Federal Trade Commission take the position that unpaid tax liens can be reported forever. This seems to be against the plain language of the statute.)

• Accounts placed for collection more than 7 years ago. When in doubt, the FTC assumes that an account will be placed for collection 180 days after it first becomes delinquent.

• Anything else, other than crimes, older than 7 years.

An important exception allows reporting of older information if the consumer is applying for a loan of $150,000 or more, life insurance with a face value of $150,000 or more, or a job with an annual salary of $75,000 or more.

Consumers may obtain one free credit report per year from each of the three major credit reporting agencies—Equifax, TransUnion, and Experian—by going to their centralized site of www.annualcreditreport.com.

(Beware of firms promising to “clean up your credit” for a fee. Many times, they employ illegal tactics that involve you committing fraud or perjury. The Federal Trade Commission has been very aggressive in suing such services.)

References in periodicals archive ?
You have a right under the Fair Credit Reporting Act to know the information contained in your credit file at the consumer reporting agency.
Section 605 of the Fair Credit Reporting Act (15 U.
Specifically, it fails to even mention the fact that the GOP-controlled Congress changed the law governing Credit Reporting Bureaus (CRBs), when it significantly amended the Fair Credit Reporting Act (15 USC 1681 et seq.
Employers who purchase public-record information must be aware of the legal use of information under EEOC regulations and the Fair Credit Reporting Act, which applies to criminal and credit background checks provided by a consumer reporting agency.
issued pursuant to the 2003 federal Fair and Accurate Transactions Act amendments to the Fair Credit Reporting Act that require employers to shred or burn paper, and permanently erase hard drives and other computer memory devices, before disposing of documents and files containing personal information.
In 2003 Congress reviewed the Fair Credit Reporting Act for the first time since it was originally passed in 1970, and I was invited to testify on four different occasions.
The federal bank, thrift institution, and credit union regulatory agencies issued on June 6, 2005, interim final rules under the Fair Credit Reporting Act (FCRA) that create exceptions to the statutory prohibition against obtaining or using medical information in connection with credit eligibility determinations.
FEDERAL REGULATORS HAVE PROPOSED long-awaited affiliate marketing roles that would help implement the Fair Credit Reporting Act of 2003, which requires banks, thrifts and credit unions to give consumers a chance to opt out of most efforts to share personal financial information with corporate affiliates.
US District Judge Paul Magnuson, in Minnesota, rejected the plaintiffs' claims that the airline had violated the Electronic Communications Privacy Act and the Fair Credit Reporting Act by providing information to NASA for an aviation-security research project.
Credit bureaus are covered by the Fair Credit Reporting Act.
Companies providing background-screening information are subject to the requirements so be sure you verify their compliance with the Fair Credit Reporting Act (FCRA) before proceeding.
The FTC's legal staff informed an attorney hired to perform a sexual harassment investigation for a company that her report was probably covered by the Fair Credit Reporting Act (FCRA).