Violations of the Fair Credit Reporting Act
The Fair Credit Reporting Act acknowledges the vulnerability of consumers occasioned by their financial engagements. These engagements predispose them to violation instances. Consumer Reporting Agencies and creditors have violated the Fair Credit Reporting Act.
Presentation of non-updated reports. Use of ancient reports occurs when a customer's credit status changes but remains un-updated by the customer reporting agency. Common instances arise upon an agency failing to acknowledge a customer account closure, failing to take note of a discharged debt, or failing to update information. Delayed customer report distorts their current bankruptcy status.
Mix up of customer data by the consumer reporting agency. It occurs when the agency mixes names, social security numbers, or customers with similar addresses.
Failure to notify the customer of the use of their report. Instances of failed notification occur when creditors secretly provide customer reporting agencies with negative updates, undisclosed decisions by creditors and employers based on adverse credit ratings, use of inaccurate reports without alerting customers of their right to dispute, and failure to disclose to the customer the agency responsible for compiling their report,
Customer Reporting Agency generating inaccurate reports. It includes not recognizing and updating paid-up debts, miss to acknowledge timely payments of bills, or failing to correct an identity theft previously reported. In 2003 Fair and Accurate Transaction Act (FACTA) introduced an amendment to FCRA providing an entitlement for customers to access one free report from each credit reporting agency. A study by The Federal Trade Commission in 2015 shows that 23 percent of customers encountered inaccuracy in their credit reports.
A Customer Reporting Agency is resorting to granting unauthorized access to reports. Specifically, the Act stipulates persons' access to customer information. Authorized users include employers upon your consent, landlords, insurance providers, creditors, and utility companies.
Failure to incorporate FCRA guidelines when handling disputes
Users' utilizing reports for impermissible purposes. The Act spells out instances where an employer accesses a report without your prior consent, a creditor discharged on bankruptcy snooping to check on your overall financial status, and other attempts by persons to weigh one financial status with an ulterior motive to file a claim.
Upon falling prey to violations, the remedy available to consumers involves suing the creditor or credit bureau in the Federal or State court for damaged financial well-being. The Fair Credit Reporting Act accomplishes a protective role in the eventuality of breaches in using consumer financial data. It ensures consumers receive alerts on the state of the financial transaction reports. The report provides a basis for the consumers credit rating, which is integral for consumers to access credit on reasonable interest terms.To this end, always check with the State on the applicable version of the Fair Credit Reporting Act or local consumer protection. Some have formulated specific consumer laws