Fair Credit Reporting Act (FCRA)

The Fair Credit Reporting Act regulates how consumer credit information is collected, shared, and used in the US. It gives consumers the right to a free credit report from each of the three major bureaus (Equifax, Experian, TransUnion) annually via AnnualCreditReport.com, and the right to dispute inaccurate or incomplete information. Credit bureaus must investigate disputes within 30 days and correct or delete items they cannot verify.

For fraud and identity theft victims, the FCRA provides several specific rights: placing an initial fraud alert (one year, automatically spread to all three bureaus), an extended fraud alert (seven years, requires an identity theft report), a security freeze (also called a credit freeze), and the right to block fraudulent information on the credit report with documentation that it resulted from identity theft.

Creditors who furnish inaccurate information must correct it when notified by a bureau or consumer. Wilful non-compliance can result in actual damages, statutory damages of $100-$1,000 per violation, punitive damages, and attorney fees — making the FCRA a powerful tool for consumers whose credit files have been corrupted by fraud.