Misplaced Pages

#433566

44-594: FCRA may refer to: Fair Credit Reporting Act , United States Foreign Contribution (Regulation) Act, 2010 , India Topics referred to by the same term [REDACTED] This disambiguation page lists articles associated with the title FCRA . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=FCRA&oldid=932822976 " Category : Disambiguation pages Hidden categories: Short description

88-481: A centralized online source for disclosure. The FCRA Section 612 merely requires nationwide specialty consumer reporting agencies to establish a streamlined process for consumers to request consumer reports, which shall include, at a minimum, the establishment by each such agency of a toll-free telephone number for such consumer disclosure requests. Fair and Accurate Credit Transactions Act The act also contains provisions to help reduce identity theft , such as

132-425: A consumer has some sort of credit agreement (such as credit card companies, auto finance companies and mortgage banking institutions). Other examples of information furnishers are collection agencies (third-party collectors), state or municipal courts reporting a judgment of some kind, past and present employers and bonders. Lenders have an important role to play in ensuring credit reports are accurate. Under

176-542: A credit 'score' (an evaluation of your creditworthiness) or a 'monitoring' service to help guard against identity theft". Since 2012, the Consumer Financial Protection Bureau (CFPB) has published a list of consumer reporting agencies (CRAs). It enables consumers to see which CRAs might be important to them and gives them the contact information of each CRA in the list, so consumers can more easily order their personal consumer reports. Many of

220-457: A fraud alert on that consumer's file for at least 90 days, and notify all other consumer reporting agencies of the fraud alert. Consumers may request an extended fraud alert, in which case requires the reporting agency to disclose this fraud alert in any credit score that it issues for the consumer during a seven-year period. An extended alert also requires the reporting agency to exclude the consumer from any list distributed to third parties for

264-438: A nationwide basis relating to: Because these nationwide specialty consumer reporting agencies sell consumer credit report files, they are required to provide annual disclosures of their report files to any consumer who requests disclosure. A partial list of companies classified as nationwide specialty consumer reporting agencies under FCRA includes: Telecheck , ChoicePoint , Acxiom , Integrated Screening Partners , Innovis ,

308-497: A report each year to the Federal Trade Commission of fraud alert requests and complaints involving fraud or identity theft received by the reporting agency. Finally, the section requires the Federal Trade Commission to set up a means by which consumers can contact the reporting agencies and creditors with a complaint involving identity theft or fraud. After its enactment, some consumer advocacy groups criticized

352-421: A result of state laws", the phone numbers provided to request these reports connected to automated systems that the article described as "maddening in their complexity and unforgiving if your circumstances vary from the system's programming." Furthermore, the article criticised automated systems for forcing consumers to "navigate a thicket of recorded information -- including sales pitches for their products, such as

396-437: A type of consumer reporting agency, hold a consumer's credit report in their databases. CRAs have a number of responsibilities under FCRA, including the following: The three big CRAs— Experian , TransUnion , and Equifax —do not interact with information furnishers directly as a result of consumer disputes. They use a system called E-Oscar. In some areas of the country, however, there are other credit bureaus. In addition to

440-407: Is a foreseeable risk of identity theft. For example, credit cards, monthly billed accounts like utility bills or cell phone bills, social security numbers, drivers license numbers, medical insurance accounts, and many others. This significantly expands the definition to include all companies, regardless of size, that maintain, or otherwise possess, consumer information for a business purpose. Because of

484-412: Is different from Wikidata All article disambiguation pages All disambiguation pages Fair Credit Reporting Act The Fair Credit Reporting Act ( FCRA ), 15 U.S.C. § 1681 et seq. , is federal legislation enacted to promote the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies . It was intended to shield consumers from

SECTION 10

#1732772171434

528-603: Is reported : We may report information about your account to credit bureaus. Late payments, missed payments, or other defaults on your account may be reflected in your credit report. Notice after negative information is reported : We have told a credit bureau about a late payment, missed payment or other default on your account. This information may be reflected in your credit report. Consumer reporting agencies (CRAs) are entities that collect and disseminate information about consumers to be used for credit evaluation and certain other purposes, including employment. Credit bureaus,

572-660: The Red Flags Rule , which required the federal banking agencies, the National Credit Union Administration , and the Federal Trade Commission to jointly create regulations regarding identity theft prevention applicable to financial institutions and creditors. The Red Flags Rule also addresses how card issuers must respond to changes of address. Regulations that were established as a result include: Another key item

616-629: The Consumer Credit Protection Act , Pub. L.   90–321 , 82  Stat.   146 , enacted June 29, 1968 . The Fair Credit Reporting Act was one of the first data privacy laws passed in the Information Age . The findings of the U.S. Congress that led to the Act and the Act's regulatory goals set the direction of information privacy in the U.S. and the world for the next sixty years. Among these innovations were

660-640: The Federal Trade Commission in June 2008, the Red Flags Rule applies to a very broad list of businesses including "financial institutions" and "creditors" with "covered accounts". A "creditor" is defined to include "lenders such as banks, finance companies, automobile dealers, mortgage brokers, utility companies and telecommunications companies". However, this is not an all-inclusive list. The regulations apply to all businesses that have "covered accounts". A "covered account" includes any account for which there

704-573: The Insurance Services Office , Tenant Data Services , LexisNexis , Retail Equation , Central Credit , Teletrack , the MIB Group , United Health Group (Ingenix Division), and Milliman . Although the major CRAs Experian , Equifax , and TransUnion are required by law to provide a central source website for consumers to request their reports, the nationwide specialty consumer reporting agencies are not required to provide

748-653: The Accuracy of Consumer Report Information , Limiting the Use and Sharing of Medical Information in the Financial System , Financial Literacy and Education Improvement , Protecting Employee Misconduct Investigations , and Relation to State Laws . This title of the act contains provisions that deal mainly with the prevention of identity theft. In particular, it establishes new regulations concerning 'fraud alerts' and 'active duty alerts', establishes new limitations on

792-509: The Act went into effect in 2004, courts received massive amounts of expiration date lawsuits, all federal circuit to have expressly considered the issue now refuse to hear related class-action lawsuits. In 2008 Congress passed the Credit and Debit Card Receipt Clarification Act (Clarification Act), which made merchants who printed expiration dates on receipts, but otherwise complied with the Act, to not in willful noncompliance up to June 3, 2008. In

836-562: The CRAs in the list provide personal reports to consumers for free. The 2016 edition of the list is available on the CFPB's website here . As the Red Flag rule widely defines creditors, many businesses (such as utilities) are now required to collect personal information (such as SSN and driver's license numbers) that they do not need and have no use for. This policy is precisely contrary to

880-527: The FACT Act claiming that it preempts some stricter and already-existing state regulations, and provides exceptions that are 'far too generous' to new regulations regarding disclosure of personal information by banks as found in the act. Furthermore, an article in The Washington Post criticized the difficulty in retrieving the credit reports in some of the states that were first eligible under

924-566: The FCRA, creditors who furnish information about consumers to consumer reporting agencies must: (This notice doesn't have to be sent as a separate notice, but may be placed on a consumer's monthly statement. If sent as part as the monthly statement, it needs to be conspicuous, but need not be in bold type. Required wording developed by the US Federal Treasury Department): Notice before negative information

SECTION 20

#1732772171434

968-536: The FTC's advice to consumers that they should disclose their social security number to companies only when absolutely necessary. This aspect of the Red Flag rule has the unintended consequences of increasing the number of businesses that hold consumers' Social Security numbers, thereby putting consumers at greater risk for identity theft through data theft. The Act prohibits merchants from including credit- and debit-card expiration dates on electronically printed receipts. When

1012-450: The Federal Trade Commission found that 23% of consumers identified inaccurate information in their credit reports. Under the Fair and Accurate Credit Transactions Act (FACTA), an amendment to the FCRA passed in 2003, consumers are able to receive a free copy of their consumer report from each credit reporting agency once a year. The free report can be requested by telephone, mail, or through

1056-467: The Red Flags Rule, section 114 and 315 of the Fair and Accurate Credit Transactions (FACT) Act. However, due to widespread confusion over coverage under the act, specifically whether the term "creditor" applies to particular businesses, members of Congress repeatedly requested that FTC postpone the deadline for compliance with Section 315 until after December 31, 2010. According to a Business Alert issued by

1100-568: The U.S. Federal Trade Commission, the Consumer Financial Protection Bureau, and private litigants. Before standardization of credit scoring, statements of character were integral to credit reports well into the 1960s. With credit reports containing probing details about personality, habits, and health, in the hearings on the Fair Credit Reporting Act lawmakers were troubled that individuals were helpless to clear up errors. The Fair Credit Reporting Act, as originally enacted,

1144-456: The ability for individuals to place alerts on their credit histories if identity theft is suspected, or if deploying overseas in the military, thereby making fraudulent applications for credit more difficult. Further, it requires secure disposal of consumer information . The FACT Act contains seven major titles: Identity Theft Prevention and Credit History Restoration , Improvements in Use of and Consumer Access to Credit Information , Enhancing

1188-432: The act. Vermont, Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey, and California had all established laws by 1994 requiring credit bureaus to provide a free credit report on demand. However, according to U.S. Pirg, "[w]ith the FACT Act, the financial industry won its primary goal: permanent preemption of stronger state credit and privacy laws." Specifically, state laws are preempted in certain areas, such as

1232-452: The amount of damages can be massive. The provision excludes receipts that are handwritten or imprinted, where the only method of recording the credit card number is by such means. The act did not become effective for three years after its enactment for any cash register manufactured before January 1, 2005, and did not become effective for one year after its enactment for any cash register manufactured after January 1, 2005. The act established

1276-572: The broad definitions in these regulations, few businesses will be able to escape these requirements. Provisions in this title require that the Federal Trade Commission, in consultation with the Federal banking agencies and the National Credit Union Agency, "prepare a model summary of the rights of consumers ... with respect to the procedures for remedying the effects of fraud or identity theft...". Beginning sixty days after

1320-423: The consumer, or that the consumer "obtained possession of goods, services, or money as a result of the blocked transaction or transactions. This section requires that all consumer reporting agencies develop a means of communicating to each other consumer complaints regarding fraud or identity theft, or requests for fraud alerts or blocks. Furthermore, the section requires that each consumer reporting agency release

1364-608: The content of a consumer report, the responsibilities of "furnishers", responses of consumer reporting agencies to disputes over inaccurate information (although there is an exception for statutes in place before 1996), and duties of those who take an adverse action based on a report. An article dated March 13, 2005 and published in the Washington Post stated that while "[r]esidents of six East Coast states—Maryland, Georgia, Maine, Massachusetts, New Jersey and Vermont—are already eligible for free reports from all three agencies as

FCRA - Misplaced Pages Continue

1408-417: The determination that there should be no secret databases to make decisions about a person's life, individuals should have a right to see and challenge the information held in such databases, and that information in such a database should expire after a reasonable amount of time. Commonly referred to as credit reports, a consumer report "contains information about your credit—and some bill repayment history—and

1452-413: The government-authorized website: AnnualCreditReport.com . The FCRA regulates: If a consumer's rights under the FCRA are violated, they can recover: The statute of limitations requires consumers to file suit prior to the earlier of: two years after the violation is discovered; or, five years after the violation occurred. Consumer attorneys often take these cases on a contingency fee basis because

1496-450: The information within four days of receiving proof, a copy of an identity theft report, the identification of the information by the consumer, and a statement from the consumer that the information is not a result of any transaction he participated in. Agencies are not required to block any information (and may rescind any existing blocks) in the case that the block was found to be made in error or based on erroneous information as provided by

1540-407: The printing of customers' credit card numbers on receipts, and prescribes that new regulations be established by certain government agencies regarding the detection of identity theft by financial institutions and creditors . The title requires that consumer reporting agencies, upon the request of a consumer who believes he is or about to be a victim of fraud or any other related crime, must place

1584-439: The purpose of extending credit or offering insurance to that consumer. The title also provides for any active duty member to request an active duty alert, which requires the reporting agency to disclose such alert with any credit report issued within 12 months of the request and to exclude the active duty member from any list distributed to third parties for the purpose of extending credit or offering insurance for two years from

1628-452: The request. The act also prohibits businesses from printing more than five digits of any customer's card number or card expiration date on any receipt provided to the cardholder at the point of sale or transaction. This provision is enforced with statutory damages ranging from $ 100 to $ 1000 per violation, and when claims are aggregated in a class action (brought by all the customers of a retailer that failed to truncate credit card numbers)

1672-528: The status of your credit accounts. This information includes how often you make your payments on time, how much credit you have, how much credit you have available, how much credit you are using, and whether a debt or bill collector is collecting on money you owe. Credit reports also can contain rental repayment information if you are a property renter. It also can contain public records such as liens, judgments, and bankruptcies that provide insight into your financial status and obligations." A 2015 study released by

1716-571: The statute allows a consumer to recover attorney's fees from the offending party. Users of the information for credit , insurance , or employment purposes (including background checks ) have the following responsibilities under the FCRA: Employers using consumer reports to screen job applicants or employees must follow specific procedures: A creditor, as defined by the FCRA, is a company that furnishes information to consumer reporting agencies. Typically, these are creditors , with which

1760-457: The summary of these rights were established, all reporting agencies are required to provide a copy of this summary to any consumer that contacts an agency and states that he believes he has been a victim of fraud or identity theft. The Act also requires any reporting agency to block the reporting of any information in a consumer's file that the consumer identifies as information that originated from an alleged identity theft. Such agency must block

1804-419: The three big CRAs, the FCRA also classifies dozens of other information technology companies as "nationwide specialty consumer reporting agencies" that produce individual consumer reports used to make credit determinations. Under Section 603 of the Fair Credit Reporting Act, the term "nationwide specialty consumer reporting agency" means a consumer reporting agency that compiles and maintains files on consumers on

FCRA - Misplaced Pages Continue

1848-564: The willful and/or negligent inclusion of erroneous data in their credit reports. To that end, the FCRA regulates the collection, dissemination, and use of consumer information, including consumer credit information. Together with the Fair Debt Collection Practices Act (FDCPA), the FCRA forms the foundation of consumer rights law in the United States. It was originally passed in 1970, and is enforced by

1892-440: Was the requirement that mortgage lenders provide consumers with a Credit Disclosure Notice that included their credit scores , range of scores, credit bureaus, scoring models, and factors affecting their scores. This form is typically available from credit reporting agencies, and many will send this directly to the consumer on the lenders' behalf. Financial institutions faced a mandatory deadline of November 1, 2008, to comply with

1936-601: Was title VI of Pub. L.   91–508 , 84  Stat.   1114 , enacted October 26, 1970 , entitled An Act to amend the Federal Deposit Insurance Act to require insured banks to maintain certain records, to require that certain transactions in United States currency be reported to the Department of the Treasury, and for other purposes . It was written as an amendment to add a title VI to

#433566