Understanding the Fair Credit Reporting Act: A Guide for Florida Consumers

Your credit score can have a tremendous impact on the trajectory of your life. Good credit gives you access to better financing terms when you take out loans, and it may open up more possibilities for housing and employment.

Because so much depends on your credit score, lawmakers designed the Fair Credit Reporting Act (FCRA) to ensure accurate reporting and regulate how businesses can use the information in your credit report.

The Basics of the FCRA

The FCRA protects consumers by safeguarding their rights and assigning certain responsibilities to credit reporting agencies.

Consumer Rights

It’s wise to regularly check your credit report. When you do, keep the following consumer rights in mind:

• The right to dispute inaccurate information on your credit report
• The right to access your reports and receive a free copy once per year
• The right to place a credit freeze or fraud alert on your file
• The right to seek damages if a business violates the FCRA

It may be difficult to determine whether a company has violated your FCRA rights. If this is the case, a consumer protection attorney can review your situation and offer advice.

Credit Reporting Agency Responsibilities

Credit reporting agencies have significant responsibilities, and the FCRA is meant to ensure they fulfill them. These are some of the law’s main provisions:

• Credit reporting agencies must have clear procedures to ensure they report correct information
• Agencies must investigate disputed information and correct it if needed
• Only businesses with a clear purpose (like lenders or potential employers) may access your credit file
• If you are denied a loan based on your credit score, the lender must notify you and explain why

Inaccurate credit reporting can cause serious problems for consumers, but in some cases, you may be able to recover compensation.

Have Your FCRA Rights Been Violated?

The FCRA gives you legal recourse if a credit bureau or another business violates your rights — and an experienced consumer protection attorney can help you understand your options. Call Shrader, Mendez & O’Connell at 813-360-1529 to get started with a free consultation.