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Facts that You Need to Know About Fair Credit Reporting Act

By Safinajones Subscribe to RSS | February 29th 2012 | Views:

Fair Debit Collection Practices Act or FDCPA which has been by enforced by FTC requires all business organizations to report accurate and detailed information related to the debts that the debtors owe to the business organization. Business personnel who deal with in house collection of debt need to have a clear understanding of the basic structure and laws pertaining to the Fair Credit Reporting Act.

Companies who do not abide by these laws will have to pay costly fines. In many cases when the company fails to heed these FCRA laws, the debts owed to the particular business organization are discharged.

FCRA law ensures that customers are not deprived of their right to verify information related to their credit report. As per FRCA law a business organization is allotted with a time period of 30 days to carry out a verification of the alleged debt owed by a debtor to the company, in case any national credit bureau sends a complaint to the same. Equifax, TransUnion, and Experian, is the national credit bureaus which can send a notice to the company and ask it to remove the alleged debt from the debtor’s credit file if it cannot produce sufficient evidences in its favor. The limitation is being imposed by the Federal Trade Commission on your ability to make future claims.

Fair Credit Reporting Act plays key role in furnishing the credit reporting agencies with information about consumers. Effective functioning of FRCA enables you to let other business houses know about the negligence of a particular individual in repaying his debts. This information in turn makes other business organizations aware before they carry out any business transaction with the potential customer.

Fair Credit Reporting Act also protects the consumer from information that are fraudulent and inaccurate responsible for tarnishing, your reputation and affect your credit history in a negative way. FDCPA regulates the process of debt collection and FRCA ensures that no false, or outmoded information is reported against you. The Fair Credit Reporting Act does not allow the business organization to report old debts claiming to be the new one.

The rights that have been outlined by the Fair Credit Reporting Act are as mentioned below:

You can pull your credit statement to obtain information related to your credit rating.

You are entitled to enjoy the right to seek information about your credit report when the same is being used to damage your credit rating.

You can write to the credit agencies in case of dispute. They will help you to improve your credit score by removing false information from your credit history.

You can even impose restriction on the access to your credit history.

You have a provision for placing alert on the report pertaining to your credit score so as to identify theft and fraud if any.

You can even file a suit in the court of law against the violators of Fair Credit Reporting Act.

Safinajones - About Author:
Safina Jones is a legal advisor who has good information on FDCPA. To gather information on Fair Credit Reporting Act please visit

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