The quality of your financial life — whether you can get loans, qualify for jobs or housing, and enjoy lower credit card rates — is largely determined by the information contained in your credit report. As such, it’s critical that the information in your credit report is accurate and up to date. If you notice inaccuracies on your credit report, it’s important to act quickly. The sooner you correct these inaccuracies, the more likely they are to be corrected and the less damage they will cause. If a credit bureau breaks a rule outlined in the Fair Credit Reporting Act (FCRA), you could be entitled to compensation. If you’re unsure about what steps to take, consult with an experienced FCRA compliance attorneys.
FCRA is a federal law that protects the privacy of consumer information. It ensures that consumers can access their credit reports only when they have a permissible purpose. It also requires consumer reporting agencies to set policies and procedures that comply with the law. Those who violate the law face significant legal penalties. For example, a job applicant who discovers that an employer accessed his or her credit report without a permissible reason could sue the company for actual damages and statutory damages of $100 to $1,000 per violation along with attorneys’ fees.
Credit agencies must obtain written consent from a consumer before pulling their credit report for any permissible purposes. They must also provide a clear and concise explanation of the purpose for which they are accessing the report. In addition, CRAs must have strong security measures to prevent unauthorized access and data exposure. They must also provide a user-friendly webpage for consumers to place and remove a credit freeze.
Likewise, landlords are required to run background checks on prospective tenants and make informed decisions. However, there is a lot of information that is protected by the FCRA that landlords must not reveal to prospective tenants. For instance, some rental applicants may have criminal records that are prohibited from being disclosed under the FCRA unless they give their permission to share that information. If a landlord violates the FCRA by not following the proper procedure, he or she could be sued for violating federal consumer protection laws.
The FCRA compliance experts at Ballard Spahr regularly advise clients on their responsibilities and liabilities regarding the use of consumer information. Our team has experience with the full range of state and federal consumer credit laws, as well as substantial expertise in litigation defense and prosecution. We can help you develop your FCRA-compliant tenant background checks and other screening practices and assist you in developing procedures that are in compliance with all applicable laws. We are also highly skilled in negotiating and litigating with regulators and other legal professionals. Contact us today to schedule a consultation. We look forward to working with you.