Introduction to Credit Laws

Introduction to FCRA (Fair Credit Reporting Act)

FCRA Basics

• regulates consumer information
• provides guidelines for NCRA's for use of consumer's credit information
• outlines consumer rights regarding credit information
• includes public records

Purpose of FCRA is to require NCRA's to adopt reasonable procedure that are fair and equitable to the consumer in terms of:

• Confidentiality
• Accuracy
• Relevancy
• Proper Use

Agents Role - Follow the guidelines of the FCRA and the other U.S laws related to consumer information.

FCRA Coverage

• Access to consumer's credit information
• Accuracy of a consumer's credit information
• Consumer's employment information

ACCESS TO CONSUMER'S INFORMATION

Free Credit Report -The FCRA allows for one free credit report annually at no charge from each NCRA.

Permissible Purpose

• A credit file can only be disclosed to a third party for reasons decided by FCRA

ACCURACY OF CONSUMER'S CREDIT FILES

• When the consumer identifies an inaccuracy on their credit report, the FCRA mandates that NCRA's must:

1. Reinvestigate the matter
2. Track the current status
3. Delete the item from the credit file within 30 days.

All relevant information regarding the dispute is provided to the consumer.

CONSUMER'S EMPLOYMENT INFORMATION

The consumer must be notified when:

1. Public record information about the consumer is reported to the credit grantor.

• This notification must include the name and address of the firm to whom the information is being provided.

ECOA (Equal Credit Opportunity Act)

• This law ensures that credit decisions are based on objective criteria and that creditors do not discriminate against consumer for arbitrary reasons.

COUNTERFEIT ACCESS DEVICE AND COMPUTER FRAUD AND ABUSE ACT

• This law requires that individuals must be authorized to access a computer and its information.

FAIR DEBT COLLECTION PRACTICES

• This law restricts the situations and actions that debt collectors use to receive payment from consumers, such as abusive, threatening behaviors and unfair practices.

FAIR BILLING ACT

• This law protects consumer rights related to billing errors. Billing errors include reporting an incorrect balance on the bill, adding unauthorized charges, failure to post a charge, and failure to send a current statement to a current address, among other things. Consumer can report any error on their bill within 60 days.

FACTA (Fair and Accurate Credit Transactions Act)

• This law provides additional protection to consumers who are victims of fraud or identity theft.