What is the Fair Credit Reporting Act and why was it created?

The Fair Credit Reporting Act (FCRA) was written in 1970 as an amendment to the Consumer Credit Protection Act. The FCRA provides additional measures of consumer protection in the areas of fairness, accuracy, and privacy of the information collected by the credit bureaus. It also allows you to personally engage in credit repair and maintenance processes, verifying that the information in your credit report is correct.

Federal consumer rights under the FCRA include:

• Access to your credit report. You have the right to know what is in your credit file. The FCRA requires Experian, TransUnion, and Equifax to provide you with a free copy of each report once per year. You are also entitled to receive a free copy of your report if:
  
  
  • A potential lender views it
  • You are the victim of identity theft and/or want to place a fraud alert in your credit file
  • You request public assistance
  • You are unemployed and plan to apply for a new job within 60 days