You must be told when your credit report hurt you
15 U.S.C. § 1681m(a)
In plain words
If a lender, landlord, insurer or employer takes adverse action against you based even partly on a credit report, it must tell you, name the bureau that supplied the report, disclose any credit score it used, say the bureau did not make the decision, and tell you about your right to a free report within 60 days and to dispute errors.
Who is protected
Consumers denied credit, insurance, housing or employment, or offered worse terms, because of a consumer report.
When it applies
It has no special conditions: it protects everyone it names.
Check whether it applies to youWhat you can do
Get the free report the notice points to
Request it from the named bureau within 60 days of the notice, then check it in the Credit Health tool.
Deadline: Within 60 days of the adverse action notice.
Open the tool
Honest limits
- The notice does not have to explain the full reasons, and it does not undo the decision.
The law
- Federal lawFCRA — adverse action notices
15 U.S.C. § 1681m(a)
What it says: Users of consumer reports must give notice, the score used, the bureau's contact information, and your rights.
Read the official texthttps://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1681m&num=0&edition=prelim
Court cases
- Partial winSame topicTaggart v. Lorenzen
Taggart v. Lorenzen, 587 U.S. 554 (2019)
a creditor may be held in civil contempt for violating a bankruptcy discharge order when there is no fair ground of doubt that the order barred its conduct
- Homeowner wonSame topicJerman v. Carlisle, McNellie, Rini, Kramer & Ulrich, L.P.A.
Jerman v. Carlisle, McNellie, Rini, Kramer & Ulrich, L.P.A., 559 U.S. 573 (2010)
the FDCPA's bona fide error defense does not excuse a debt collector's incorrect interpretation of what the Act requires
- Homeowner wonSame topicKaltenbach v. Richards
Kaltenbach v. Richards, 464 F.3d 524 (5th Cir. 2006)
a person who meets the FDCPA's general definition of debt collector is subject to the whole Act even while enforcing a security interest
- Homeowner wonSame topicHeintz v. Jenkins
Heintz v. Jenkins, 514 U.S. 291 (1995)
the FDCPA applies to lawyers who regularly collect consumer debts, even through litigation
- Homeowner lostSame topicObduskey v. McCarthy & Holthus LLP
Obduskey v. McCarthy & Holthus LLP, 586 U.S. 466 (2019)
a business engaged only in non-judicial foreclosure is not a debt collector under the FDCPA, apart from the provision barring threats to take property without a present right
- Homeowner lostSame topicMidland Funding, LLC v. Johnson
Midland Funding, LLC v. Johnson, 581 U.S. 224 (2017)
filing an obviously time-barred proof of claim in bankruptcy does not violate the FDCPA
Related rights
Free credit reports from the three national bureaus
15 U.S.C. § 1681j(a)(1)(a)(1)(A)–(B)
By law, Equifax, Experian and TransUnion must each give you a free copy of your file once every 12 months when you ask through the official central source, AnnualCreditReport.com. The three bureaus have also made free weekly reports permanent on that site. Other sites may charge you or be scams.
Read this rightDispute errors on your credit report
15 U.S.C. § 1681i(a)(1)(A)
If your credit report has something wrong or incomplete — like a payment reported late that you made on time — you can dispute it with the credit bureau for free. The bureau must investigate, usually within 30 days, and fix or delete information it cannot verify.
Read this rightCancel a credit repair contract within 3 business days
15 U.S.C. § 1679e
You can cancel any credit repair contract, for any reason and without penalty, until midnight of the third business day after you sign it. The company must give you a "Notice of Cancellation" form in duplicate and may not start work during those 3 days. Some states give you 5 days.
Read this rightA credit repair company cannot charge you before the work is done
15 U.S.C. § 1679b(b)
Federal law bans credit repair companies from charging or taking any money for a service before that service is fully performed. A company that bills you up front, charges a "setup" or "first work" fee, or charges a monthly fee for work it has not done yet is breaking the law.
Read this rightA written contract and a rights disclosure come first
15 U.S.C. § 1679c
Before you sign, a credit repair company must give you a separate written statement titled "Consumer Credit File Rights Under State and Federal Law." No service can be provided without a signed, dated written contract stating the total cost, a detailed description of the services, any guarantees, how long it will take, the company's address, and a bold cancellation notice next to your signature. Any waiver of these rights is void.
Read this rightYou can recover damages when the FCRA is broken
15 U.S.C. § 1681n
A credit bureau or a company that reports to one that willfully breaks the FCRA owes your actual damages or statutory damages of $100 to $1,000, possible punitive damages, and your costs and attorney's fees. A negligent violation owes actual damages and fees. The claim must be filed within 2 years of discovering the violation and no more than 5 years after it.
Read this right