Your Legal Rights in Credit Repair

Federal Laws That Protect You

Several federal laws protect consumers from unfair credit reporting and debt collection practices. Understanding these rights empowers you to challenge inaccuracies and stop harassment.

Fair Credit Reporting Act (FCRA)

The FCRA regulates how credit bureaus collect, use, and share your credit information. It gives you important rights:

Your Rights Under FCRA:

• Access to Your Credit Reports: You're entitled to one free credit report from each bureau every 12 months
• Right to Dispute: You can dispute inaccurate or incomplete information
• Investigation Requirement: Bureaus must investigate disputes within 30 days
• Error Correction: Inaccurate information must be corrected or deleted
• Consent for Reports: Employers must get your permission to check your credit
• Notification of Negative Action: You must be informed if credit is denied based on your report
• Identity Theft Protection: Right to place fraud alerts and credit freezes

Fair Debt Collection Practices Act (FDCPA)

The FDCPA protects you from abusive, deceptive, and unfair debt collection practices by third-party collectors.

What Debt Collectors Cannot Do:

• Call before 8 AM or after 9 PM
• Contact you at work if you've told them not to
• Harass, threaten, or abuse you
• Use false or misleading information
• Discuss your debt with others (except your attorney)
• Continue contacting you after you've disputed the debt in writing
• Threaten arrest or legal action they don't intend to take
• Add unauthorized charges to your debt

Your Rights Under FDCPA:

• Request written verification of the debt
• Dispute the debt within 30 days of first contact
• Request that collectors stop contacting you
• Sue collectors who violate the FDCPA
• Report violations to the FTC and CFPB

Fair Credit Billing Act (FCBA)

The FCBA protects consumers against unfair billing practices for open-end credit accounts (credit cards).

Protections Include:

• Right to dispute billing errors
• Creditors must acknowledge disputes within 30 days
• Investigation must be completed within two billing cycles
• You can withhold payment on disputed amounts during investigation
• Protection against credit damage during dispute resolution

Equal Credit Opportunity Act (ECOA)

The ECOA makes it illegal for creditors to discriminate based on:

• Race or color
• Religion
• National origin
• Sex
• Marital status
• Age (provided you're old enough to enter a contract)
• Receipt of public assistance

Credit Report Time Limits

Negative information cannot remain on your credit report indefinitely. The FCRA sets strict time limits:

• Late Payments: 7 years from the date of delinquency
• Collections: 7 years from the original delinquency date
• Chapter 13 Bankruptcy: 7 years from filing date
• Chapter 7 Bankruptcy: 10 years from filing date
• Foreclosures: 7 years from the date of foreclosure
• Tax Liens: 7 years from the date paid
• Hard Inquiries: 2 years (only affect score for 1 year)

Credit Repair Rights

What Credit Repair Companies Can and Cannot Do

Credit repair companies must follow the Credit Repair Organizations Act (CROA):

They Cannot:

• Charge fees before services are performed
• Make false claims about services
• Advise you to make false statements
• Remove accurate negative information
• Guarantee specific results

They Must:

• Provide a written contract
• Explain your rights
• Give you three days to cancel without charge
• Tell you that you can do credit repair yourself

How to Exercise Your Rights

Disputing Credit Report Errors

1. Send a dispute letter to the credit bureau via certified mail
2. Include documentation supporting your dispute
3. The bureau must investigate within 30 days
4. You'll receive written results of the investigation
5. If unresolved, add a statement to your credit file

Stopping Debt Collector Harassment

1. Send a written request to stop contacting you
2. Keep copies of all correspondence
3. Document violations (dates, times, what was said)
4. File complaints with FTC, CFPB, and your state attorney general
5. Consider consulting with a consumer rights attorney

When to Seek Legal Help

Consider consulting an attorney specializing in consumer rights if:

• Credit bureaus refuse to correct errors
• Debt collectors violate the FDCPA
• You're sued for a debt you don't owe
• You believe you're a victim of discrimination
• Identity theft has severely damaged your credit
• You need to file bankruptcy

Many consumer rights attorneys work on contingency, meaning they only get paid if you win your case.