Under the Fair Credit Reporting Act (the Act), Congress intended to promote the accuracy and privacy of information in consumer credit reports.  The Act regulates consumer reporting agencies to maintain correct and complete files, but also mandates certain actions must be taken by the agencies in order to protect the consumer from falsely reported information.  

Although it is a good practice to review your credit reports at least once a year, it is an acute necessity for those facing financial difficulties or after emerging from a bankruptcy filing.  The Act can be utilized to clean the records and ensure that only correct information is reported.  Negative information on a person's credit report can dramatically decrease his or her credit score and continuously plague a borrower into the future.

According to the Act, you have a right to review your credit report and to have incorrect information corrected. Credit bureaus are required to maintain accurate information for the benefit of the creditor. Reports can be issued only to those with a legitimate business reason. These include creditors, employers, insurers, and government agencies reviewing the status for licensing or benefit purposes, or any third party for whom you request a report.

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