In 1970 Congress enacted a federal law to guard consumers from inaccuracies on their credit reports. This law is recognized as the Fair Credit Reporting Act or the FCRA and it was approved to protect consumers and encourage the fairness, accuracy and privacy of personal information compiled by credit reporting agencies on credit reports.

The main credit reporting agencies are TransUnion, Equaifax and Experian. They are in the commerce of collecting and compiling information used for credit evaluation and other purposes.

A consumer now has the right to dispute and challenge any information found on a credit report on the basis of completeness and truthfulness. After a dispute is received the credit bureaus have 30 to 45 days to confirm the correctness and the ownership of the disputed credit. If they are incapable to offer that certification within the time frame then the negative listing must be deleted from the report.

The credit reporting agencies have a number of other responsibilities under the FCRA, which include providing a credit report to the consumer. Prior to 2003 the consumer was required to pay for this report but an amendment in 2003 has given consumers the right to obtain one free credit report from each of the main credit reporting agencies one time per year. All the consumer has to do is request it. If credit is denied on the foundation of what is contained in a report, the bureau with the problematic information must also provide a report.

A consumer has the right to question any information on his or her report. As per the FCRA if information is deleted as a result of the consumer’s dispute the credit reporting agency cannot reinstate the negative information without notifying the consumer in writing.

The FCRA also limits the sum of time that destructive information can be retained on the report. Normally most must be removed within 7 years from the time of delinquency but bankruptcies can stay on for 10 years and tax liens can stay on for 7 years after they are paid off.

It has been estimated that as many as 40% of all doubtful information is not appropriately verified within the time limit. A consumer can use that fact for their advantage. However, be aware that true and correct information should not be in doubt, as reliable and true information should remain on the report even if it is unhelpful.

Credit repair on credit reports can be accomplished due to the rights given by the FCRA. The consumer can do credit repair themselves or there are also professional companies that specialize in credit repair. It takes time and fortitude to be victorious at credit repair but it can be accomplished.