Your Rights Under the FCRA
The Fair Credit Reporting Act (FCRA) is a federal law that gives you powerful rights over your credit information. Understanding these rights is essential for effective credit repair.
What is the FCRA?
The Fair Credit Reporting Act (15 U.S.C. § 1681) is a federal law enacted in 1970 that regulates how consumer credit information is collected, shared, and used. It protects consumers from unfair, inaccurate, or misleading information on their credit reports.
The FCRA applies to credit bureaus (Experian, Equifax, TransUnion), the creditors who furnish information to them, and anyone who uses credit reports (like landlords or employers).
Your Key Rights
1. Right to Dispute
You can challenge any information you believe is inaccurate, incomplete, or unverifiable. Bureaus must investigate within 30 days.
2. Right to Deletion
If the bureau cannot verify the disputed information with the creditor, they must delete it. This is the core of credit repair.
3. Right to Access
You have the right to know what's in your file. You are entitled to one free report every 12 months from each bureau.
4. Right to Privacy
Your credit report can only be given to those with a "permissible purpose" (e.g., creditors, landlords, employers with consent).
Time Limits for Negative Items
The FCRA sets strict limits on how long negative information can remain on your credit report. If items remain longer, they are illegal.
| Item Type | Time Limit |
|---|---|
| Late payments | 7 years from date of delinquency |
| Collections | 7 years from original delinquency date |
| Charge-offs | 7 years from date of first delinquency |
| Chapter 7 bankruptcy | 10 years from filing date |
| Chapter 13 bankruptcy | 7 years from filing date |
| Hard inquiries | 2 years |
| Foreclosures | 7 years |
What if Your Rights Are Violated?
If a credit bureau or creditor violates your FCRA rights (e.g., by ignoring a dispute or re-inserting deleted info without notice), you have legal remedies:
- Actual damages — Compensation for financial losses you suffered (e.g., higher interest rates denied loan)
- Statutory damages — $100 to $1,000 per willful violation
- Punitive damages — Additional damages for particularly bad conduct
- Attorney's fees — The violator may be required to pay your legal costs
You can file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov/complaint.
Additional Resources
- Full text of the FCRA (FTC)
- CFPB Credit Reports & Scores Guide
- AnnualCreditReport.com (Official free reports)
