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Understanding the purpose of the FCRA

On Behalf of | May 4, 2022 | Fair Credit Reporting Act Issues

Obtaining info about your credit report in Illinois can be a tedious process. This is all the more true if you don’t know where to turn to in order to get this info. This is why it’s crucial to know about a law called the Fair Credit Reporting Act (1970). The FCRA makes it easier to get the credit data you need.

Why did the government pass the FCRA?

The FCRA is one of the lynchpins of modern American consumer law. First passed in 1970, this is a federal law that guarantees your right to receive and review your credit info. This is data that is stored in consumer credit bureau files.

This crucial federal law was set up for the task of bringing uniformity to the data collection methods used by credit reporting agencies. It also enforces the manner in which they are allowed to access, share, and make use of this info. All of this will be reflected in the official credit report you receive.

What can the FCRA do to help you?

You can thank the passage of the FCRA for allowing you to access your credit report. You can do so to find out exactly why you may have been denied a credit card or an insurance policy. If you were denied employment based on your credit history, you can access your credit report to pinpoint the precise cause.

Under the rules of the FCRA, you have the right to request a full account of all of the data that a consumer reporting agency has collected concerning your credit history. You can order a free file disclosure from each of the national credit bureaus. This is a privilege you can make use of once every 12 months.

You should also note that the FCRA gives you access to your credit data while restricting others from seeing it. This keeps you safe from the prying eyes of people who have no business viewing or making use of this info. Only landlords, creditors, and insurance companies have access to this data.