What Is Fair Credit Reporting Act?
The Fair Credit Reporting Act of 1970 is a federal law governing consumer reporting agencies (CRAs), entities that regularly assemble or evaluate information about consumers for reports furnished to third parties for specified purposes. The statute covers information about creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living when the statutory definition and permissible-purpose rules apply. A people-search or background-screening provider may be subject to FCRA for a particular report or business activity, but a provider's label alone does not establish CRA status. Coverage depends on the provider's practices, the report's purpose, and the statute's definitions and exceptions.
At a glance
- Full name
- Fair Credit Reporting Act
- Short code
- FCRA
- Enacted
- 1970
- Last major update
- Consumer Credit Reporting Reform Act 1996; FACTA 2003; Red Flags Rule 2007; federal credit-freeze and yearlong fraud-alert provisions 2018
- Jurisdiction
- United States (federal)
- Private right of action
- Yes
- Primary enforcer
- FTC, CFPB, and state Attorneys General
- Statutory citation
- 15 U.S.C. § 1681 et seq.
Scope, who FCRA covers
Protected data
Consumer rights & protections
Right to at least one free credit report every 12 months from each nationwide CRA (Equifax, Experian, and TransUnion) through AnnualCreditReport.com; additional programs may provide more access
Right to dispute inaccurate or incomplete information (§ 1681i). CRA must investigate within 30 days
Right to have inaccurate or incomplete information corrected, deleted, or blocked when the statutory conditions apply
Right to opt out of pre-approved credit and insurance offers at optoutprescreen.com (§ 1681b(e))
Right to place a security freeze or fraud alert on credit files
Right to know who obtained your report during the prior 2 years for employment purposes or 1 year for other purposes (§ 1681g)
Right to sue a CRA or user that willfully or negligently violates FCRA (private right of action)
Notable features
FCRA expressly permits private actions for qualifying willful or negligent violations. A consumer still must establish the elements of the applicable claim, and a provider's status, report purpose, permissible purpose, and other facts matter; the statute does not make every people-search listing a consumer report.
Enforcement & penalties
Enforcing agency: FTC, CFPB, and state Attorneys General
Penalties: Civil actions under FCRA can allow actual damages, statutory damages of $100-$1,000 for a willful violation, punitive damages in appropriate cases, and attorneys' fees. Federal and state enforcement powers depend on the provision and the enforcing authority; agencies may seek civil penalties or other relief where authorized.
Private right of action: FCRA grants an explicit private right of action for qualifying violations by consumer reporting agencies and users, and for some furnisher duties. A furnisher's duties under § 1681s-2(b) after a consumer reporting agency forwards a dispute may support a private claim, while § 1681s-2(a) is generally enforced by government authorities. Consumers must still establish the elements of the applicable claim; statutory damages of $100-$1,000 apply to a willful violation, with punitive damages and attorneys' fees available where authorized.
Landmark enforcement cases
Spokeo, Inc. v. Robins
2016U.S. Supreme Court case holding that alleging an FCRA statutory violation is not automatically enough for Article III standing; the consumer must show a concrete injury. The judgment was vacated and the case was remanded for the lower court to apply that standard.
Official source →FTC v. Spokeo
2012Spokeo paid $800,000 to settle FTC charges that it marketed consumer profiles to HR and recruiters without complying with FCRA requirements for CRAs, including the obligation to ensure accuracy and provide notices to the subjects of reports.
Official source →Relevance to data brokers
A people-search or background-screening provider can fall within FCRA when its practices and report purpose satisfy the statutory CRA definition. In that situation, FCRA duties can include reasonable accuracy procedures, file access, and dispute investigation; the general 30-day investigation rule has statutory qualifications. A consumer should match the request and evidence to the report's purpose instead of assuming that an ordinary public listing is covered.
Related provider workflow examples
These links are workflow examples for related providers. They do not establish FCRA coverage, provider acceptance, or deletion.
Generate requests in under 60 seconds
Generate removal requests for 1,034 US/global profiles, $9
Frequently Asked Questions
Does FCRA apply to people-search sites like Spokeo or BeenVerified?
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It can apply when the provider regularly assembles or evaluates consumer information for reports furnished to a third party for a permissible purpose covered by FCRA. Marketing language alone does not resolve the question, and a personal-use people-search listing is not automatically a consumer report. Check the provider's stated use, the recipient, and the applicable statutory definitions before relying on FCRA rights.
How do I dispute inaccurate information in my credit report?
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Contact the CRA (Experian, Equifax, or TransUnion) with the specific item disputed and supporting information. The CRA must reasonably reinvestigate within 30 days, subject to the statute's possible 45-day period when additional relevant information is supplied, and must correct or delete information that is inaccurate, incomplete, or cannot be verified as required by law. If the dispute is with a furnisher (like a lender), the CRA generally forwards relevant dispute information. Ask the CRA for the investigation results and an updated report; free-report availability depends on the applicable FCRA circumstance.
What is the FCRA opt-out for pre-approved credit offers?
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Under 15 USC § 1681b(e), consumers can opt out of having their credit information shared for pre-screened credit and insurance offers. Call 1-888-5-OPT-OUT or visit optoutprescreen.com. The opt-out lasts 5 years electronically or can be made permanent via written request.
What is the "Summary of Your Rights Under the Fair Credit Reporting Act"?
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The CFPB and FTC publish a standardized summary describing important FCRA rights, including file access, disputes, prescreened-offer opt-outs, and security freezes. The notice is not a substitute for checking the statute and the specific disclosure or adverse-action requirement that applies to your situation.
What is the history of the Fair Credit Reporting Act (FCRA)?
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Enacted by Congress in 1970, the FCRA established federal rules for consumer reporting agencies and consumer reports. FACTA in 2003 added important identity-theft, free-report, fraud-alert, and information-blocking provisions. A 2018 federal law later made credit freezes and yearlong fraud alerts free nationwide; check current FTC and bureau instructions for the process.
How do I remove inaccurate addresses or unauthorized hard inquiries from TransUnion and Equifax under FCRA?
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Under 15 U.S.C. § 1681i, submit a dispute to the credit bureau (Equifax, Experian, or TransUnion) identifying the inaccurate address or unauthorized hard inquiry and include relevant supporting information. The bureau must reasonably reinvestigate the dispute, subject to the statute's timing and frivolous-dispute rules; it must correct, delete, or block information that is inaccurate, incomplete, or cannot be verified as the law requires. An inquiry dispute may also turn on whether the requester had a permissible purpose.
Official sources & citations
Other federal privacy laws
Federal privacy law is sectoral, each statute covers a specific data type or industry. Here are the other federal regimes to know alongside FCRA: