What right does a consumer have under the FACT Act regarding information in a credit file?

• A. The right to dispute inaccurate or incomplete information; the CRA must reinvestigate and correct or delete items found to be inaccurate within a reasonable time.
• B. The right to obtain a one-time free copy of the report each year.
• C. The right to sue the furnisher for any error immediately.
• D. The right to limit the reporting of nonfraudulent information.

Answer: (A)

Disputing and correcting information in a credit file is a fundamental protection under FACTA. When a consumer spots information that seems inaccurate or incomplete, they can file a dispute with the credit reporting agency. The agency must investigate the item, working with the furnisher, and complete the reinvestigation within a reasonable time. If the item is found to be inaccurate or incomplete, the agency must correct or delete it from the consumer’s file and notify any parties that received the information. The result of the investigation must be communicated to the consumer, and a corrected report can be sent to those who accessed it during the relevant period. This directly affects what Information appears in the credit file.

There is also a related right to obtain a free annual credit report, but the focus of this question is on disputing and ensuring the accuracy of information in the file.