Fair Credit Reporting Act

• The Fair Credit Reporting Act of 1970 first established the right of consumers to have an accurate credit report. The FCRA created legal accountability for creditors and credit-reporting bureaus. It also gave consumers the ability to request their credit information from the bureaus that compile the reports. The focus of the FCRA was the elimination of inaccurate and irrelevant information from credit reports while maintaining consumer confidentiality.
  
  

Consumer Credit Reporting Reform Act

• In 1996, Congress passed the Consumer Credit Reporting Reform Act to modernize and reform the FCRA. The CCRRA restricted what information third parties could pass on concerning an individual's credit report. Under the law, they could not report information known to be inaccurate. The act also created a legal obligation for these third parties if an individual disputes a charge or debt. The third party must inform all credit bureaus of the dispute.
  
  

FCRA Amendment of 1997

• An additional amendment to the FCRA came in 1997 focusing on employers who check the credit of potential employees. It also strengthened the power of consumers to remove inaccuracies from their credit reports. The amendment requires employers to obtain written permission before checking the credit of a worker or potential employee. Additionally, creditors and credit reporting bureaus were required to take extra steps to ensure the accuracy of items appearing on credit reports.
  
  

Fair and Accurate Credit Transmissions Act

• The Fair and Accurate Credit Transmissions Act of 2003 further modified the FCRA and updated it for the digital age. In addition to further defining the responsibilities of creditors and credit-reporting bureaus regarding accuracy, the FACT Act established the ability for consumers to receive free copies of their credit reports from each of the major reporting bureaus once per year. Consumers can access these free copies through the Annual Credit Report website, which includes information on how to dispute inaccuracies (see Resources).
  
  

Ensuring Accuracy

• Checking your credit report lets you ensure its accuracy and request changes if necessary. If you find incorrect information, or entries on your credit report that do not belong to you, you should contact the credit-reporting bureau that issued the report and dispute the information. The law requires the bureau to verify the information and remove it if incorrect or if the agency cannot verify it.