What Gives Me The Right?

What gives you the right to verify and dispute information reported on your credit profile? Specifically, the Federal Fair Credit Reporting Act (15 U.S.C. 1681) is the law that affects this and other rights. Several states have enacted their own version of the FFCRA.

These laws are usually more favorable to the consumer, but must afford at least the same protections as the Federal Act. In recent years, there has been movement to force all states to comply only with the FFCR, but there has been little case law to stop enforcement of the various state laws. Just remember that in all cases, the Federal law will protect you from certain kinds of credit report abuse.


What Are The Basics?

The FFCRA thrives to ensure that all information reported on your credit profile is accurate.
It also prohibits certain information from being reported and requires that certain information is deleted after a time prescribed by law. It is a safety net for consumers in many ways. In many other ways, it is not.

Unfortunately, companies and individuals who violate the FFCRA are subject to minimal sanctions. It is difficult to sue these companies unless you know how to do it yourself. Most attorneys do not pursue claims that have nominal damages for their clients and for their fees. The matters may be too time consuming if they are defended. The law does, however, allow the consumer to take action on their own, or with the help of credit service agencies like Credit Solutions Consultants.

The FFCRA provides that only certain persons or organizations may obtain your credit report for a permissible purpose. Generally, this means it may be obtained by some government agencies or by court order. It also means that a company may obtain your credit report if it is pursuant to a request to obtain credit, insurance or in some cases employment. Obtaining your credit report for any other purpose is a violation of the FFCRA.

The FFCRA also limits what kind of information may appear on your credit profile.

Some of the limitations are:
    a. Cases of Bankruptcy that predate the report by more than 10 years.
    b. Civil suits and judgments that predate the report by more than 7 years.
    c. Paid tax liens that predate the report by more than 7 years.
    d. Collections or charge offs that predate the report by more than 7 years.
    e. Other adverse information the predates the report by more than 7 years.


There are other restrictions and limitations in the FFCRA, but the seven year rule is a good place to start.

You will notice that sometimes the same account appears two or three times with different collection agencies or as a transferred account. The seven year period begins to run from the date of the original delinquency on the account, not as of the date of placement with the collection agency. This fact alone is grounds for removal for many collection or transferred accounts. or more detailed information of the FFCRA.