The Fair Credit Reporting Act (FCRA) is a federal law passed in 1970 to regulate the collection, distribution and use of consumer credit information. This is one of the prominent laws leveraged during credit repair to make sure that consumers’ credit reports are accurate and up-to-date. The responsibility to research and confirm the information on these reports however is still in the hands of the individual. The credit bureaus and businesses that report to them will never verify the accounts without a request from the consumer.

Under the law, credit bureaus are required to provide consumers with a free credit report every 12 months. They must also inform you if a negative item that was removed has been placed back on your credit report within 5 days. Lastly, they are responsible for deleting items that have been on there longer than what is considered excessive; generally 7 years on most accounts.

Information providers that report to the credit bureaus are also regulated. Creditors, collection agencies, and the courts systems that report to the credit reporting agencies are required to provide complete and accurate information.

If asked to investigate an account, they have 30 days to either confirm the information they have previously provided or correct the account. These same information providers must inform consumers’ about any negative information that is set to be placed on their credit reports.

What the FCRA means to credit repair?

Although you are responsible for checking up on the state your credit reports, the credit bureaus and information providers are required by law to investigate any account that you deem inaccurate, incomplete, misleading or questionable in any way. It is up to them to prove that the account information is 100% accurate. Credit repair uses the FCRA to ensure that these colossal businesses don’t undermine the rights of American consumers.