On April 25, 1971, the Fair Credit Reporting Act was established by the federal government so that consumers would be protected against the reporting of obsolete, misleading, or inaccurate information. Lawmakers’ intent in designing the law was to help make sure that consumer reporting agencies operated responsibly and fairly.

The FCRA provides a list of rights and procedures that will assist you in clearing away negative remarks and reestablishing your creditworthiness – regardless of your previous credit history. By understanding your rights and using the law to your advantage, it’s possible to remove bankruptcy, judgments, late payments, collection accounts, charge-offs, and other negative information from your files permanently.

What’s first with this process? Draw copies of your credit reports from each of the three major credit bureaus. You can find addresses for each of these bureaus in the Yellow Pages under “Credit Reporting Agencies,” either on the Internet or in the phone book. If you’ve been denied credit within the past 60 days, you can get a free copy of your credit report by sending a copy (not original) of the letter stating that you’ve been denied, and include your request for a credit report. Other information needed will be your full name, date of birth, Social Security number, and all addresses you’ve lived at within the last five years. If you haven’t been denied credit within the last 60 days, you’ll have to buy the report, but you can do so from each credit bureau for a relatively small fee. In California, the fee is eight dollars to get a copy from each of the three major bureaus, and it may cost you a different amount in another state, depending on where you live.

In addition, you can also visit credit bureaus in person and ask to review your file. Call the bureau in question and ask to make an appointment. Then, present the proper identification and pay the fee necessary. You can also be accompanied by one of the person you choose if you wish to do so. The law gives you this right.

You can also request a credit report by mail, and if you do, you should receive a copy within three weeks. Along with it, you should also receive an explanation of the various abbreviations encodes the report contains. According to the Fair Credit Reporting Act, you have the right to challenge any remark on your report that you think is incomplete or inaccurate. Those items must be investigated by the credit bureau within a reasonable period of time, usually about 30 days. If it’s found that this information is somehow inaccurate, incorrect, out of date, or can’t be verified in longer, it has to correct or take the information off your file.

In addition, if the bureau does not respond to your initial dispute challenge within a reasonable time, you can follow up with another letter. This time, demand (don’t request) that the bureau should respond to your dispute investigation request immediately, or you will be forced to take legal action. Wait about two weeks in order to give them time to comply, and make sure you keep copies of all correspondence you undertake.

If the bureau persists in violating your rights by refusing to reinvestigate your legitimate dispute, send them a final letter demanding action. This time, send copies of your letter, along with the original request, to the Federal Trade Commission and your local office of the attorney general.