The Fair Credit Reporting Act was established in 1971 to regulate credit bureau reporting. Under the law, incorrect or outdated information cannot stay in a consumer’s credit report. It also forces credit reporting agencies to adhere to reasonable guidelines for collecting and distributing information. Under the Fair Credit Reporting Act, credit bureaus allow consumers access to their credit reports. However, a fee may be charged for this service, and consumers are required to prove their identity to the agency before obtaining a copy. An amendment to the Fair Credit Reporting Act was passed in 2003. The Fair and Accurate Credit Transactions Act entitles all consumers to one free credit report per year from each of the three major credit bureaus. This helps to ensure accuracy and allows consumers to inspect and amend credit reports annually without being required to pay for the service.
