Fair Credit Reporting Act

What is the Fair Credit Report Act?

The Fair Credit Reporting Act (FCRA) protects the consumer information privacy collected by tenant screening services and credit bureaus. The law was passed in 1970 to regulate what information can be collected, accessed, used and shared in the consumer reports. The Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) are the two federal agencies that oversee the enforcement of this law. Additionally, several states have their own laws for credit reporting.

What data can be collected under the Fair Credit Report Act?

Your landlord might run a background check and credit report before your agree to the lease agreement and sign it. The FCRA mandates that when a business (or your landlord) requests a credit report, they must specify the reason as part of the credit check for renting. Additionally, the FCRA requires that landlord has written permission from you as the renter to pull the credit report. The following information can be included in your credit report:

• Bill payment history
• Past loans
• Current debt
• Employment information
• Previous addresses
• Arrest record
• Child support
• Bankruptcy filing
• Child support

Summary of Your Rights Under the Fair Credit Reporting Act

According to Consumer Finance Protection Bureau, here is a summary of your rights under FCRA

• You must be told if information in your file has been used against you
• You have the right to know what is in your file
• You have the right to ask for a credit score
• You have the right to dispute incomplete or inaccurate information
• Consumer reporting agencies must correct or delete inaccurate, incomplete, or unverifiable information
• Consumer reporting agencies may not report outdated negative information
• Access to your file is limited
• You must give your consent for reports to be provided
• You may limit “prescreened” offers of credit and insurance you get based on information in your credit report

‍

‍

‍