FCRA: the Consumer Justice Wagon down the Decades

The band wagon of justice in the form of FCRA played the role of a sword and shield for a consumer, preventing him from the trap of being victimized with unjust complications in his financial life. A critical statute revised in a commendable manner by the Congress and courts triggered in the birth of The Fair Credit Reporting Act (FCRA) way back in the year 1970.This Federal law was implemented to promote accuracy, fairness, and the privacy of personal information collected by Credit Reporting Agencies or CRAs.

The Credit Reporting Agencies (CRA) has access to important reports of individuals for businesses, credit cards, banks, employers, landlords, and other income follow-ups. The FCRA provides security and protection to confidential records of a consumer. This includes credit reports, consumer investigatory reports, and employment background checks. The FCRA ensures that CRAs follow strict procedures to protect the confidentiality, accuracy, and relevance of credit information.

In the present era the financial arena is overcast with the smoky scams and illegal activities. Keeping in mind the current scenario, the consumer needs to tighten his belt and be extremely careful regarding his personal records.

These are some of the weapons for general precautionary measures:

•Be cautious with your personal-identification number, and try not to reveal your Social Security Number, date of birth, or mother's maiden name to any source, except when necessary.

•Request your CRA to inspect your credit report for errors, to inspect whether accounts have been opened without your approval, and to find out the sources requesting your credit history. However, the CRA can charge you for accessing your report and the present rate is $9.

•Don’t go for prescreening. Prescreening is the practice of selling lists of customers based on information in the credit file.

•Avoid marketing offers that derive from affiliate sharing.

•Opt-out of affiliate information sharing.

•If you have the proof that your credit report has been mishandled, or that there had been a violation of the FCRA, consider contacting an attorney who concentrates on FCRA litigation.

•Request the CRAs to withhold the last five SSN digits when supplying credit reports.

•If you have been or suspect that you may be the victim of identity theft you can place a "fraud alert" with the CRAs indicating that you do not allow unauthorized credit to be issued in your name.


There are times that even after all precautionary measures consumers are often victimized and face serious problems with their credit reports. The credit reports include sensitive personal information and play a major role to evaluate the ability to qualify for major financial privileges like a low interest loan.

FCRA follows a framework of Fair Information Practices.

The Band wagon of Justice in the form of FCRA empowers the consumers with certain rights:

•Individuals with good credit scores can obtain credit more easily, and at lower interest rates.

•The Consumer has the right to access his credit file. You can request your file by contacting the CRA directly.

•You have a right to a free copy when an entity takes an "adverse action" against you based on the credit report. Free copies are also justified where the individual is unemployed and seeking employment, where the report is inaccurate because of fraud, and where the individual is on welfare.

•Under the Fair and Accurate Credit Transaction Act (FACTA) of 2003 that amended the FCRA, consumers may now request a free annual credit report from each of the three major CRAs.

•The FCRA also prohibits the provision of reports that contain medical information for employment purposes without notice and explicit affirmative consent for release of the health data.

•Target marketing is not a permissible use of credit reports. Currently, both Equifax and Experian are in a consent agreement with the FTC to not use credit reports for target marketing.

•The FACTA (Fair and Accurate Credit Transaction Act) of 2003, which updates the FCRA, ensures that a creditor notify a consumer when it offers credit terms that are considerably less favorable when compared to the general consumers.

•The FACTA (Fair and Accurate Credit Transaction Act) of 2003, which is complementary to the FCRA, excluded additional categories of employee investigation data from credit reports, thus eliminating protections offered by the FCRA. If the investigation is of suspected misconduct relating to employment, compliance with the law, or compliance with preexisting written policies of the employer, such information is not regulated by the FCRA. However, if the employer takes an adverse action due to such investigations, the employee has a right of notice.

•FCRA does not apply to investigations performed by companies or individuals who are not CRAs.

•Individuals may dispute inaccurate information that appears in a credit report. CRAs are required to investigate disputes and provide a report back to the consumer. If the CRA cannot resolve the dispute, the individual can add a statement to the credit report. Inaccurate or unverifiable information must be removed within 30 days of notice of the dispute.

•The FCRA affords individuals a private right of action that can be pursued in federal or state court against CRAs, users of credit reports, and furnishers. In certain circumstances, individuals can obtain attorney's fees, court costs, and punitive damages.

•FCRA also now limit data disclosures that can lead to identity theft. Merchants will be required, over time, to truncate credit and debit numbers on electronically printed receipts. Consumers will also have the right to request that a CRA withhold their last five SSN digits on credit reports.

The FCRA supports the Consumer with a helpful pivot to fight his way through legally if he is within the claws of a demanding Collection Agency or a misguided Credit Report.

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