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HOW TO REPAIR YOUR CREDIT USING
THE FCRA
The Fair Credit Reporting Act
is long and tedious to read and usually consumers give up reading
it and are often left to wonder how it protects them. The important
thing to remember is that only a few sections and subsections are
important to read to thwart off inaccurate credit reporting. Below
is a snapshot of the FCRA and how it protects you.
The Fair Credit Reporting Act: (this is
all you really need to read)
Sec. 1681c. - Requirements relating to information
contained in consumer reports
-Information excluded from consumer reports
-Exempted cases
-Running of reporting period
-Information required to be disclosed:
-Indication of closure of account by consumer:
-Indication of dispute by consumer:
-Information excluded from consumer reports
Except as authorized under subsection (b) of this
section, no consumer reporting agency may make any consumer report
containing any of the following items of information:
(1) cases under title 11 or under the Bankruptcy
Act that, from the date of entry of the order for relief or the
date of adjudication, as the case may be, antedate the report by
more than 10 years.
(2) Civil suits, civil judgments, and records
of arrest that, from date of entry, antedate the report by more
than seven years or until the governing statute of limitations has
expired, whichever is the longer period.
(3) Paid tax liens which, from date of payment,
antedate the report by more than seven years.
(4) Accounts placed for collection or charged
to profit and loss which antedate the report by more than seven
years.
(5) Any other adverse item of information, other
than records of convictions of crimes which antedates the report
by more than seven years.
(b) Exempted cases ( means these instances are
exempt to ordinary reporting rules)
The provisions of subsection (a) of this section
are not applicable in the case of any consumer credit report to
be used in connection with -
(1) a credit transaction involving, or which may
reasonably be expected to involve, a principal amount of $150,000
or more;
(2) the underwriting of life insurance involving,
or which may reasonably be expected to involve, a face amount of
$150,000 or more; or
(3) the employment of any individual at an annual
salary which equals, or which may reasonably be expected to equal
$75,000, or more.
(c) Running of reporting
period (means how long items can report)
(1) In general, the 7-year
period referred to in paragraphs (4) and (6) of subsection (a)
of this section shall begin, with respect to any delinquent account
that is placed for collection (internally or by referral to a third
party, whichever is earlier), charged to profit and loss, or subjected
to any similar action, upon the expiration of the 180-day period
beginning on the date of the commencement of the delinquency which
immediately preceded the collection activity, charge to profit and
loss, or similar action.
(2) Effective date: Paragraph (1) shall apply
only to items of information added to the file of a consumer on
or after the date that is 455 days after September 30, 1996.
(d) Information required to be disclosed:
(means what is required to be disclosed)
Any consumer reporting agency that furnishes a
consumer report that contains information regarding any case involving
the consumer that arises under title 11 shall include in the report
an identification of the chapter of such title 11 under which such
case arises if provided by the source of the information. If any
case arising or filed under title 11 is withdrawn by the consumer
before a final judgment, the consumer reporting agency shall include
in the report that such case or filing was withdrawn upon receipt
of documentation certifying such withdrawal.
(e) Indication of closure of account by consumer:
(means rules CRA to follow at your request)
If a consumer reporting agency is notified pursuant
to section 1681s-2(a)(4) of this title that a credit account of
a consumer was voluntarily closed by the consumer, the agency shall
indicate that fact in any consumer report that includes information
related to the account.
(f) Indication of dispute by consumer: (means
CRA must list dispute in progress)
If a consumer reporting agency is notified pursuant
to section 1681s-2(a)(3) of this title that information regarding
a consumer who [2] was furnished to the agency is disputed by the
consumer, the agency shall indicate that fact in each consumer report
that includes the disputed information.
Each one of these rules applies to how a credit
bureau disseminates and reports your information. If you are attempting
to repair your credit, it is vital to review these rules and apply
them to your letters. Remember, all
letters need to be sent certified mail return receipt requested
and... keep records forever.
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