What Rights Do You Have Under the Fair Credit Reporting Act?
Most people do not think much about their credit reports until something goes wrong. A loan gets denied. An apartment application is rejected. A credit card company suddenly lowers a credit limit. Or an account appears that you do not recognize.
The Fair Credit Reporting Act, commonly called the FCRA, gives consumers important rights when it comes to the information contained in their credit reports.
The law does not guarantee that credit reports will never contain mistakes. It does, however, require credit reporting companies to follow reasonable procedures and gives consumers the right to challenge information that is inaccurate or incomplete.
Understanding your credit report rights is the first step toward knowing what you can do when something on your credit report is wrong.
You Have the Right to Review Your Credit Reports
You have the right to see the information being reported about you.
Reviewing your credit reports can help you discover problems before they cause serious harm. You might find an account that does not belong to you, a payment incorrectly reported as late, a collection account with the wrong balance, or information belonging to another person.
Because Equifax, Experian, and TransUnion maintain separate credit files, the information appearing on one report may not always appear the same way on the others.
Checking your reports gives you the opportunity to identify inaccurate information and take action before the error affects an important financial decision.
You Have the Right to Dispute Inaccurate Information
If information on your credit report is inaccurate or incomplete, you have the right to dispute it.
The credit bureau must then investigate the information you challenged. As part of that process, the bureau may contact the bank, lender, collection agency, or other company that reported the information.
This does not mean that every dispute will result in information being removed. Accurate negative information generally does not have to be deleted simply because a consumer disputes it.
But when information is actually wrong, the dispute process gives consumers an important opportunity to have the error investigated and corrected.
What If Your Dispute Comes Back “Verified”?
One of the most frustrating things a consumer can experience is disputing information that they believe is wrong and receiving a response saying the information was “verified.”
A verified result does not necessarily mean the information is correct. It generally means the credit bureau completed its investigation process and the disputed information was confirmed during that process.
At the same time, an incorrect result does not automatically mean that someone violated the Fair Credit Reporting Act.
What matters is what happened during the investigation. If you provided specific information showing why something was wrong and the inaccurate information remains, it may be worth looking more closely at how your dispute was handled.
Our Credit Bureau Disputes page explains this process in more detail, including why inaccurate information can sometimes remain even after a consumer submits a dispute.
Negative Information Is Not Necessarily Inaccurate Information
This distinction is extremely important.
A late payment that was actually made late, a collection account that is legitimately owed, or a bankruptcy that was actually filed may negatively affect your credit. But the fact that information hurts your credit does not make it inaccurate.
The FCRA is not a credit repair law that requires accurate negative information to be removed.
The situation is different when the information itself is wrong. An account may belong to someone else. A payment made on time may be reported late. A collection account may show an incorrect balance. A debt discharged in bankruptcy may continue to be reported inaccurately.
Your credit report rights are designed to give you a way to challenge information that is actually inaccurate or incomplete—not simply information you wish was not there.
Companies That Report Credit Information Have Responsibilities Too
Credit bureaus are not the only companies with responsibilities when credit information is disputed.
Banks, lenders, collection agencies, mortgage servicers, and other companies regularly provide information about consumer accounts to the credit bureaus.
When a dispute involving that information is properly communicated to the company reporting it, the company may have its own responsibilities to investigate the dispute and review the information it provided.
This means an unresolved credit reporting error may involve more than just the credit bureau. Understanding where the inaccurate information came from can be an important part of understanding why the problem has not been corrected.
You Have the Right to Know When a Credit Report Is Used Against You
Sometimes consumers first discover a credit report problem after they are denied credit or experience another unexpected financial setback.
If information from a consumer report contributes to an adverse decision, federal law generally requires the person or company making that decision to provide certain information about the credit reporting company involved.
That notice can help you identify which credit report was used and give you an opportunity to review the information for possible errors.
A denied loan, rejected application, or other adverse decision may be the first warning that something on your credit report needs attention.
Identity Theft Victims Have Additional Rights
If someone opens accounts or creates debts using your personal information, you may have additional rights under federal law.
Identity theft is different from an ordinary credit reporting mistake because the account itself may be fraudulent. Consumers have specific tools available to help prevent identity theft information from continuing to damage their credit reports.
Our Identity Theft page explains these issues in more detail, including how fraudulent accounts can sometimes go unnoticed until they begin affecting a consumer’s credit.
How Long Can Negative Information Stay on Your Credit Report?
Negative information generally cannot remain on a credit report forever.
Many types of negative information can generally be reported for about seven years, while bankruptcies may be reported for longer. The exact reporting period can depend on the type of information involved.
But the age of an account is a different issue from whether the information is accurate.
Information should not remain simply because the reporting period has not expired if the information being reported is actually wrong. Likewise, accurate negative information generally does not have to be removed simply because it is hurting your credit score.
When Can a Credit Report Error Become a Legal Matter?
Not every mistake on a credit report means that someone violated the Fair Credit Reporting Act. Likewise, not every unsuccessful dispute creates a legal claim.
But an unresolved error may deserve a closer look when you have clearly identified the problem, provided information showing why the reporting is wrong, and the inaccurate information continues to appear.
The circumstances matter. An error that remains after repeated disputes may raise different concerns than a mistake that is quickly corrected. The same may be true when inaccurate reporting causes actual harm, such as a credit denial, loss of financing, or worse loan terms.
If you have tried to correct inaccurate information and the problem continues, it may be worth having your credit reports and dispute history reviewed.
Keep Your Credit Report Records
Keep copies of your credit reports, dispute letters, supporting documents, and every response you receive.
These records can help show exactly what was reported, what you disputed, what information you provided, and how the companies involved responded.
A complete paper trail can be especially important when an error changes over time, disappears and later returns, or remains after multiple attempts to correct it.
Understanding Your Credit Report Rights Is the First Step
Consumers should not have to simply accept inaccurate information because a credit bureau or creditor says it has been verified.
The Fair Credit Reporting Act gives consumers important rights, but every credit reporting problem is different. Understanding what is actually wrong—and keeping records of your efforts to correct it—can help you determine what to do next.
At Shmucher Law, I represent Florida consumers dealing with credit reporting errors that have not been properly corrected. If inaccurate information remains on your credit report after you have tried to resolve the problem, contact Shmucher Law to discuss your situation.