What Is the FCRA?
The Fair Credit Reporting Act (FCRA) is a federal law enacted in 1970 (significantly updated in 1996 and 2003) that regulates how credit bureaus, lenders, and other entities collect, use, and share your credit information. It gives you significant rights as a consumer.
Note: This is general educational information only, not legal advice. For specific legal questions, consult a qualified attorney or the CFPB at consumerfinance.gov.
Key Right 1: Free Annual Credit Reports
You're entitled to one free credit report per year from each of the three bureaus at AnnualCreditReport.com (permanently expanded to weekly during COVID-19). This right cannot be taken away.
Key Right 2: The Right to Dispute (Section 611)
You can dispute any inaccurate or incomplete information. The bureau must investigate within 30 days and correct or remove information that can't be verified. Learn the full process in our dispute guide.
Key Right 3: Furnisher Liability (Section 623)
Companies that report information to credit bureaus ("furnishers") must report accurately. If they report false information and don't correct it after being notified, they may be liable for damages.
Key Right 4: Negative Information Time Limits
Most negative information must be removed after 7 years: late payments, collections, charge-offs, and civil judgments. Bankruptcies remain 7 years (Chapter 13) or 10 years (Chapter 7). Once the 7-year clock expires, you can demand removal.
Key Right 5: Identity Theft Protections
If you're a victim of identity theft, you can place a fraud alert (free, 1 year) or credit freeze (free, indefinite) on your reports. These prevent new accounts from being opened in your name.
Key Right 6: Permissible Purpose
Not just anyone can pull your credit report. Lenders, employers (with permission), landlords (with permission), and insurance companies have permissible purpose. Unauthorized pulls are illegal under the FCRA and can be disputed.
See our Consumer Rights page and the Legal & Compliance center for more.