Consumer Law Library
Fair Credit Reporting Act (FCRA)
The FCRA is the heart of credit repair. It governs the credit bureaus, the companies that report to them, and everyone who uses your report.
What the FCRA does
Enacted in 1970 as Title VI of the Consumer Credit Protection Act, the Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.) promotes the accuracy, fairness and privacy of the information in consumer reports. It applies to consumer reporting agencies (like Equifax, Experian and TransUnion), to “furnishers” that report information to them, and to “users” such as lenders, landlords, insurers and employers.
Your key rights
| Right | Section | What it means |
|---|---|---|
| Accuracy | § 607(b) | Bureaus must follow reasonable procedures to assure maximum possible accuracy. |
| Permissible purpose | § 604 | Your report may be furnished only for purposes the law allows. |
| Time limits | § 605 | Most negative information may be reported for 7 years; most bankruptcies for 10. |
| Fraud alerts & freezes | § 605A | Initial (1-year), extended (7-year) and active-duty alerts; free security freezes. |
| Identity theft block | § 605B | Information resulting from identity theft must generally be blocked within 4 business days of a proper request. |
| See your file | § 609 | You may get all the information in your file and a list of who requested it. |
| Dispute | § 611 | Bureaus must reinvestigate disputed information, generally within 30 days, free of charge. |
| Free reports | § 612 | Free reports from each nationwide bureau through AnnualCreditReport.com, and in other situations such as after an adverse action. |
| Adverse action notice | § 615 | If a report is used against you, you must be told and given the bureau’s contact information. |
| Furnisher duties | § 623 | Furnishers must report accurately, note disputes and investigate disputes. |
The dispute process
When you dispute with a bureau, it must forward all relevant information you provide to the furnisher within 5 business days, conduct a reasonable reinvestigation, and delete or correct information that is inaccurate, incomplete or unverifiable. It must send you written results within 5 business days after completing the reinvestigation, and, on request, a description of how it verified the information. A dispute may be treated as “frivolous” only in limited circumstances, and the bureau must tell you why within 5 business days.
You may also dispute certain information directly with the furnisher. Furnishers that receive notice of a dispute from a bureau must investigate, review all relevant information, and report the results (§ 623(b)).
Remedies
When a bureau, furnisher or user willfully violates the FCRA, a consumer may recover actual damages or statutory damages of $100 to $1,000, plus punitive damages and attorney’s fees (§ 616). Negligent violations allow actual damages and attorney’s fees (§ 617). Lawsuits generally must be filed within 2 years of discovering the violation and no later than 5 years after it occurred (§ 618). Some sections — including most of the furnisher accuracy duties in § 623(a) — are enforced by government agencies rather than by private lawsuits.
Source: Fair Credit Reporting Act, 15 U.S.C. §§ 1681–1681x. Section numbers refer to the FCRA as enacted; the U.S. Code uses its own numbering (for example, § 611 is 15 U.S.C. § 1681i).
Put the law to work for your credit
Our free assessment shows you which of these protections apply to your reports.