What is The Fair Credit Reporting Act (FCRA)?

Your consumer credit reports hold a lot of information about you. Others can then use that information to make decisions on whether to give you a credit card, offer you a mortgage or permit you to extend your overdraft, among other things.

If the information on file is wrong, it could negatively affect you and potentially cause you serious financial difficulty. Lenders might turn you down or only agree to lend at a higher rate than usual, and employers and landlords might discard your applications. The FCRA exists to address such things.

The FCRA governs the privacy of your information as well as the accuracy

Not everyone has a right to access your personal financial information. If it gets into the wrong hands, it could have damaging consequences for you. Therefore, there are rules set out within the FCRA that anyone possessing your information must adhere to.

It gives you the right to take certain actions

Under FCRA rules, you are entitled to view the information held on you, as well as learn who, if anyone has accessed it to make unfavorable decisions, such as rejecting your loan application. 

You have the right to dispute any information you feel is inaccurate, and you also have the right to put a freeze on your information if you suspect someone has stolen your identity and you want to prevent them from getting credit in your name. 

If you feel someone has violated your FCRA rights, it’s wise to seek legal help to determine how to rectify the situation.

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