Fair Credit Reporting Act

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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 Generally, the law prohibits reporting erroneous or outdated credit information.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 ?
To issue interpretations pursuant to section 621(e) of the Fair Credit Reporting Act (15 U.
The federal bank, thrift institution, and credit union regulatory agencies on April 23, 2004, issued for publication in the Federal Register a proposed rule under the Fair Credit Reporting Act (FCRA) that would incorporate the statutory prohibition on obtaining or using medical information in connection with credit eligibility determinations and, as required by the statute, create certain exceptions to be applied in limited circumstances.
3408 was introduced to address a controversial result of the Fair Credit Reporting Act.
Regardless of which credit reporting agency you are dealing with, the process for correcting errors is always the same under the terms of the Fair Credit Reporting Act.
7) Any disclosures that you make under section 603(d)(2)(A)(iii) of the Fair Credit Reporting Act (15 U.
Under the Fair Credit Reporting Act, credit reports can be ordered for: insurance underwriting, credit transactions, hiring (with your written permission), license eligibility or for a legitimate business purpose, such as verifying the credit worthiness of a potential business partner.
AppOne, a provider of Internet-based risk mitigation and financial technology to banks, auto finance companies and independent auto dealers throughout the continental United States, announces the release of a new feature that generates "adverse action letters," which are required by federal and state regulations including, but not limited to, the Fair Credit Reporting Act (FCRA).
21 /PRNewswire/ -- "The Partnership to Protect Consumer Credit applauds the House of Representatives for the passage of the Conference Report on the Fair Credit Reporting Act.
The group wants changes both in the tax laws affecting how the value of client lists depreciates, and in the Fair Credit Reporting Act protecting agents' proprietary ownership of those lists.
Under the federal Fair Credit Reporting Act, insurance companies must send adverse action notices to consumers whenever insurance premiums or rates are increased based on a credit score.
Serious liability is at stake, both civil and punitive, when dealing with Fair Credit Reporting Act compliance.
Pete Sessions (R-TX) would amend the Fair Credit Reporting Act (FCRA) to allow employers to use third parties to conduct workplace investigations without informing the employee being investigated.