The Fair Credit Reporting Act (FCRA) was originally passed in 1970. The FCRA regulates the collection, dissemination, and use of consumer information, including consumer credit information. The information in your credit report is used to evaluate your application for credit, insurance, employment, and renting a home. Your credit report contains information about where you live, how you pay your bills, whether you’ve been sued or arrested, and whether you’ve filed for bankruptcy. Therefore, you should be sure the information is accurate and up-to-date.
Credit errors: In 2013, a study revealed that 40 million Americans have a mistake on their credit report. Mistakes on your credit report can be very costly. Along with causing you to pay higher interest rates on loans, you may be denied for credit, insurance, a rental home, or a loan because of these mistakes. If you have a mistake on your credit report, there is a process to dispute them.
Damages: If a credit reporting agency violates its obligations under the FCRA, you may be entitled to statutory damages up to $1,000.00, actual damages, and punitive damages.
Attorney’s fees: The FCRA has a fee-shift provision. This means, the credit reporting agency pays your attorney’s fees and costs.