The Fair Credit Reporting Act of 1970 was amended in September 1996. Changes were made to promote privacy and to ensure the accuracy and fairness of information in the files of consumer reporting agencies (CRAs). Credit bureaus are CRAs that collect, buy, and sell information about you, such as how you pay your bills. In this fact sheet, the word "CRAs" refers to credit bureaus only.

Below are a few key rights provided by the 1996 amendments to the Fair Credit Reporting Act, which became effective in October 1997.

1. CRAs must investigate information you dispute or say is incorrect.

   Disputed items must be investigated within 30 days and the source of the disputed information must review the evidence you give them. The CRA must provide you with a written copy of the results within 5 days after the investigation has been completed. If the dispute is not resolved, you may add a brief statement to your file giving your point of view. The investigation period can be extended by 15 days if the CRA receives relevant information within the initial 30 days.

   Consumer tip: When disputing information in your credit report, do so in writing rather than in person or on the phone.

2. You must get written notice if information removed from your file is reinserted.

   If deleted information is placed back in your file after it has been verified to be accurate and complete, the CRA must give you a written notice of this action within 5 business days of reinserting the information.

3. You must be told if information in your file is used against you.

   If anyone uses information in your credit file to take actions against you, such as denying you credit, insurance, or employment, they must give you the name, address, and phone number of the CRA that provided the credit report.

4. You can get a copy of your credit report.

   You can buy a copy of your credit report for a reasonable fee (about $8.00 in most states in 1998). Simply contact one of the major credit bureaus at the following toll-free numbers.

   Experian Equifax Trans Union

   (888) 397-03742 (800) 685-1111 (800) 888-4213 or (800) 916-8800

5. Free credit reports are provided for special situations.

   If an application for credit, insurance, or employment is denied because of information in your credit file, you can get a free copy of your report if you request the report within 60 days of receiving the denial notice. You also can get one free copy per year if you can prove that you are unemployed and looking for work, on welfare, or a victim of fraud.

6. Potential employers must get your permission to see your credit file.

   If you are looking for a job and the potential employer would like to see your credit report, you must give them written permission to do so.

7. You have the right to get off mailing lists for preapproved credit card offers and offers of insurance.

   To stop getting the preapproved credit card offers in the mail, call the credit bureaus and tell them you want to "opt out" of prescreening offers. They will remove your name from prescreening lists. You can opt out for 2 years or permanently. For instructions, call the Opt Out Request Line at (888) 567-8688.

8. Negative information in your credit file cannot be reported for more than seven years.

   In most cases, negative information in your file cannot be reported for more than 7 years. Bankruptcies can be reported for 10 years. Negative information also can be reported after 7 years in situations involving credit transactions or life insurance of $150,000 or more and for jobs with a salary of $75,000 or more.

9. You can sue CRAs if they do not comply with requirements of the Fair Credit Reporting Act.

   If credit bureaus or other consumer reporting agencies violate parts of the Fair Credit Reporting Act, they can be sued for damages.

10. You can sue anyone who gets a copy of your credit report without a permissible purpose.

    The Fair Credit Reporting Act defines who can get a copy of your credit report. People with permissible purposes generally include potential lenders, insurers, prospective employers, legal representatives serving court orders, potential landlords, or anyone who has your written permission to see your credit report.

Prepared by Cathy Faulcon Bowen, assistant professor, Department of Agricultural and Extension Education.