FCRA – What you need to know

The Fair Credit Reporting Act is a federal law regulating the collection, dissemination, and use of consumer information, including consumer credit information in the United States.

Why does it matter how information about your credit is used?

Whenever you apply for a credit card, a car loan, a mortgage loan, or any other form of credit, the issuing company checks your credit history to assess your creditworthiness. The terms you are offered for credit (such as a loan) may be based in part on your credit score and information in your credit report.

Your credit history affects more than just your ability to get loans or the annual percentage rate (APR) on your credit cards. For instance, prospective landlords could check your credit report to see how creditworthy you are when deciding whether they can trust you to pay your rent on time.

In some states, employers may check your credit report for hiring purposes. Also, depending on the state, insurance companies may check your credit to determine whether to offer you coverage.

This CPE webinar addresses the roles and responsibilities of the FCRA and its impact on the recording requirements of Consumer Reporting Agencies (CRAs) including retention of negative information, liabilities for consumer notification, and provision of consumer credit reports.

In addition to the well-known “big three” of Experian, Equifax, and Trans Union, other organizations retaining records on consumers’ medical records and payments, insurance claims, residential and tenant history, check-writing history, and employment history may also be classed as a Nationwide Speciality Consumer Reporting Agency and fall within the remit of the FCRA.

The Consumer Financial Protection Bureau (CFPB) has undertaken the role of enforcing the FCRA including consumer rights, responsibilities of furnishers, and responsibilities of users.

Like many consumer protection statutes, the Fair Credit Reporting Act presents unique compliance challenges for creditors and other data furnishers of consumer credit information. From responding to disputes made through the various credit bureaus to direct consumer disputes your company must have proper policies and procedures in place to comply with the law and to ensure compliance with recent CFPB mandates.

The CPE webinar will address FCRA requirements for information retention and reporting as well as the impact of the CFPB Continuous Supervision program and the Internal Review Process.