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Debtors Have Rights Under The Fair Credit Reporting Act

On Behalf of | Feb 16, 2018 | Life After Bankruptcy

As a consumer, it is always wise to understand the rights you have under the law, especially when it comes to carrying consumer debt. As a consumer accrues debt, he or she may find that creditors and debt collectors are surprisingly willing to violate a consumer’s rights in order to collect repayment. Many instances of this type of behavior are illegal, but still remain common practices in debt collection and reporting.

Among your rights as a debtor are your rights to fair and accurate credit reporting. Under the Fair Credit Reporting Act (FCRA), consumers have the right to

  • Know their credit score
  • Know what is contained in a credit file
  • Know any specific information in a credit report that resulted in a denied credit application
  • Dispute incorrect information within a credit file
  • Limit others access to a credit file

If a debtor finds that a credit report contains a mistake, for instance, he or she may take legal action to correct the mistake and repair a credit score.

For debtors who face great difficulty with debt, protecting their rights to fair credit reporting as well as fair debt collection practices is essential. Without these protections, many debtors might see their entire lives turned upside down by unfair reporting and collections practices.

If you or someone you love faces difficulty obtaining relief from debt and debt collection practices, it may be time to consider a bankruptcy. Under bankruptcy, collections actions stop immediately, although the credit rating of debtor may take a significant hit.

A properly executed bankruptcy offers a debtor the chance to discharge all or some of a debt in exchange for agreeing to live under some borrowing restrictions and other boundaries for a defined amount of time. Don’t hesitate to consider a bankruptcy to give you the relief you need to get your financial world back on track