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 Generally, the law prohibits reporting erroneous or outdated credit information.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.)

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
The Fair Credit Reporting Act (FCRA) requires a creditor to disclose when it has based its decision in whole or in part on information from a source other than the applicant or its own files.
Lauderdale with experience representing financial institutions in cases involving the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Telephone Consumer Protection Act, the Florida Consumer Collection Practices Act, the Truth in Lending Act, the Real Estate Settlement Procedures Act, and the Home Ownership and Equity Protection Act.
One online course is entitled, "Recognizing and Preventing UDAAP." Other topics included in the compliance curriculum for marketers are: Americans with Disabilities Act, Community Reinvestment Act (Reg BB), Equal Credit Opportunity Act (Reg B), Fair Credit Reporting Act (FCRA), Fair Housing Act, Fair Lending, FDIC Insurance Coverage, Reg Z Advertising, Reg Z Overview, Truth in Savings Act (Reg DD).
He addresses legal considerations like due diligence and negligent hiring, privacy and discrimination laws, the Fair Credit Reporting Act, and state laws, then outlines a safe hiring program and system.
Employers are subject to the Fair Credit Reporting Act when they utilize third parties to perform background checks on job applicants or employees.
They argue state legislation is unnecessary, since the Fair Credit Reporting Act already protects employees and job applicants.
This will protect your organization by ensuring company-wide compliance set out by the Fair Credit Reporting Act (FCRA) and other state and industry-governing bodies.
Relatedly, legislation (HR 321) has been introduced in the House to amend the Fair Credit Reporting Act to restrict the use of consumer reports in most employment decisions, but the bill has not been considered.
The Board of Governors of the Federal Reserve and the Federal Trade Commission (FTC) jointly issued final rules to implement the risk-based pricing provisions in the Fair and Accurate Credit Transactions Act (FACT Act), which amends the Fair Credit Reporting Act (FCRA).
Also keep copies of all the letters you send, and ask them to block the fraudulent information per Fair Credit Reporting Act Section 605b.
A recent amendment to the federal Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies to provide you with a free copy of your credit report, at your request, once every 12 months.