What is it?S The Fair Credit Reporting Act (FCRA) regulates how consumer reporting agencies use your informationS The FRCA was passed in the 1970’s, and later amended in the 1990’s and in 2003
ScopeS The law regulates the consumer reporting industry and places disclosure obligations on users of consumer reportsS The FRCA covers two types of credit reporting S First, it covers reports that include information on a consumer’s character, general reputation, personal characteristics, or mode of living S Second, are credit reports issued by credit bureaus. These reports focus on credit information obtained by creditors.
FRCA and IllinoisS Abide by the Federal Trade Commission’s Fair Credit Reporting Act (FCRA),S 15 U. S. C. § 1661 et seq. and the following state ruling:(20 ILCS 2635/7 (A) (1) (2) (from ch. 38, par. 1607) – IllinoisUniform Conviction Information Act
FRCA and Illinois cont’dS The Illinois statute applies to employment or licensing purposesS (1) A requester shall, in the form and manner prescribed by the Department (Illinois Department of State Police), submit a request to the Department, and maintain on file for at least 2 years a release signed by the individual to whom the information request pertains. The Department shall furnish the requester with a copy of its response. (2) Each requester of conviction information furnished by the Department shall provide the individual named in the request with a copy of the response furnished by the Department. Within 7 working days of receipt of such copy, the individual shall have the obligation and responsibility 20 ILCS 2635
Recent FRCA CasesS United States of America v. Teletrack (2011)S The Federal Trade Commission charged Teletrack of violating the FRCA by selling credit reports to marketersS The FRCA protects consumers privacy by ensuring that credit report information is not sold for marketing purposesS According to the FTC, Teletrack sold credit reports and other services to businesses. With the information Teletrack gathered they created a marketing database, and sold the information to marketersS Teletrack settled and agreed to pay a civil penalty of $1.8 million and to furnish credit reports only to those people that it has reason to believe have a permissbile purpose to receive them under the FCRA United States of America v Teletrack
Recent FRCA CasesS United States of America v. Central Credit, LLC (2010)S The Federal Trade Commission charged Central Credit of violating the FRCA by not informing casinos of its legal obligations under the FRCA.S The FRCA requires that consumers be provided adverse-action notices when credit is declined or a check not cashed, secondly requires that companies that furnish information for credit reports to provide accurate information about consumers.S Central Credit failed to inform consumers of their rights under FRCA, such as the right to obtain a free annual credit report, and providing clear instructions to for requesting a free reportS Central Credit agreed to pay $150,000 in civil penalties and bars future violations of the FCRA United States of America v. Central Credit
Recent FRCA CasesS United States of America v. Credit Bureau Collection Services (2010)S The FTC charged that Credit Bureau Collection Services (CBCS) violated the FRCA by reporting information to credit agencies that consumers had proved was inaccurate, failing to inform the credit agencies that consumers had disputed the debts, and failing to investigate after receiving a notice of dispute from a credit reporting agencyS The FRCA requires that credit reporting agencies provide accurate credit reports, inform credit agencies of disputed debts.S The CBCS settled and agreed to pay $1.1 million civil penalty and was also barred from re-reporting information to credit reporting agencies that it had voluntarily deleted from credit reporting before December 2008. United States of America v. Credit Bureau Collection Services
Fixing Credit ReportsS There is no quick or easy way to fix poor credit. Time is the only thing that will repair your credit report.S “Credit Fixing Agencies” claim that they can fix credit reports. The only thing they can fix is information that is actually wrong