The rules they have to follow
A plain-English guide to the federal laws that protect you. Educational information only, not legal advice.
Fair Credit Reporting Act (FCRA)
15 U.S.C. § 1681 et seq. and Regulation V (12 CFR Part 1022). Governs Equifax, Experian, TransUnion, specialty bureaus, and the companies that report to them.
Your free reports § 1681j § 1681g
You can get your credit reports free at AnnualCreditReport.com. You also have the right to request everything in your file, including the sources of the information.
The right to dispute § 1681i(a)
If you dispute the completeness or accuracy of any item, the bureau must conduct a reasonable reinvestigation, free of charge, generally within 30 days (45 days if you send more information during the process or disputed after getting your free annual report). It must forward your dispute and documents to the company that reported the item within 5 business days.
If the information is inaccurate, incomplete or cannot be verified, it must be deleted or corrected. The bureau must send you the results within 5 business days of finishing.
Ask how they "verified" it § 1681i(a)(6)(B)(iii) § 1681i(a)(7)
If the bureau says an item was verified, you can request a description of the procedure used, including the name, address and phone number of the company it contacted. You must receive it within 15 days of your request.
Deleted items can't just come back § 1681i(a)(5)(B)
If an item is deleted and later reinserted, the furnisher must certify it is complete and accurate, and the bureau must notify you in writing within 5 business days of the reinsertion.
Dispute directly with the company § 1681s-2 12 CFR 1022.43
You can also dispute directly with the company that furnished the information. It must investigate, report results within the same timeframes, and correct anything inaccurate. A furnisher must not report information it knows or has reasonable cause to believe is inaccurate.
How long items can stay § 1681c
Most negative items: 7 years (collections and charge-offs run 7 years plus 180 days from the date of first delinquency). Chapter 7 bankruptcy: 10 years from filing. Chapter 13 is commonly removed after 7. Hard inquiries typically drop off after 2 years.
Who can pull your report § 1681b
A company needs a "permissible purpose," like a credit application you made. An inquiry you never authorized can be disputed.
When they break the rules § 1681n § 1681o § 1681p
Willful violations: actual damages or statutory damages of $100 to $1,000, plus punitive damages and attorney fees. Negligent violations: actual damages plus attorney fees. You generally have 2 years from discovering the violation (and no more than 5 years from the violation) to sue.
Fair Debt Collection Practices Act (FDCPA)
15 U.S.C. § 1692 et seq. and Regulation F (12 CFR Part 1006). Applies to third-party debt collectors and debt buyers, generally not the original creditor collecting its own debt.
Validation notice and your dispute window § 1692g 12 CFR 1006.34
Within 5 days of first contacting you, a collector must send a validation notice: the amount, the creditor, an itemization, and how to dispute. You have a validation period (at least 30 days after you receive it) to dispute in writing.
If you dispute in writing within that period, the collector must stop collection until it mails you verification of the debt § 1692g(b). Disputing after the window still matters: collectors may not report a debt they know is disputed without marking it disputed § 1692e(8).
Make them stop contacting you § 1692c(c)
If you tell a collector in writing to stop communicating, it must stop, except to confirm it's stopping or to tell you about a specific action like a lawsuit. This does not erase the debt, and the collector can still sue.
Time, place and method § 1692c(a) 12 CFR 1006.6
No calls before 8 a.m. or after 9 p.m. your time, no contact at work if you say your employer prohibits it, and no contacting you directly if they know you have an attorney. You can tell them which methods to stop using.
What collectors can't do § 1692d § 1692e § 1692f
No harassment or threats, no lying about the amount or the legal status of a debt, no threatening a lawsuit on a debt that's too old to sue on, no collecting fees or interest not authorized by the agreement or by law, and no telling your family, friends or employer about your debt.
Credit reporting before contacting you 12 CFR 1006.30(a)
A collector may not report a debt to a credit bureau before it has communicated with you about it (the ban on "passive" credit reporting).
When they break the rules § 1692k
Actual damages, up to $1,000 in statutory damages, and attorney fees. You generally must sue within 1 year of the violation.
Debt buyers, standing and the UCC
When debts are sold, often in bulk for pennies on the dollar, the paperwork frequently doesn't follow. That's real leverage.
Proof of assignment UCC § 9-406(c)
When you're told to pay someone other than the original creditor, you can request reasonable proof that the account was actually assigned to them.
Promissory notes UCC §§ 3-301, 3-308, 3-501(b)(2)
Only a "person entitled to enforce" an instrument can enforce it, and you may demand that the instrument be exhibited when payment is demanded.
State debt-buyer documentation laws
Several states require debt buyers to have specific documentation before collecting or suing, including California (Civ. Code §§ 1788.50–1788.64), New York (CPLR 3016(j); 22 NYCRR 208.14-a), North Carolina (G.S. §§ 58-70-115, -150) and Maryland (Com. Law § 14-202; Cts. & Jud. Proc. § 5-1202).
Collector licensing
Many states require collection agencies and debt buyers to be licensed. An unlicensed collector may be barred from collecting or suing.
Statute of limitations vs. credit reporting
These are two different clocks. The statute of limitations (set by your state, usually 3 to 6 years, and up to 10 in some states) limits how long a creditor can sue you. The credit reporting period (federal, generally 7 years) limits how long the item can appear on your report.
Identity theft
Identity theft block § 1681c-2
Send the bureau proof of identity, an identity theft report (from IdentityTheft.gov) and the items that aren't yours. The bureau must block them within 4 business days.
Fraud alerts and freezes § 1681c-1
Free initial fraud alerts (1 year), extended alerts for victims (7 years), active duty alerts for servicemembers, and free security freezes at each bureau.
Scams and myths to avoid
Some online "credit secrets" will hurt you. Courts reject them, and some can lead to fines or criminal charges.
CPNs / "new credit identity"
Using a "credit privacy number" instead of your SSN on credit applications is federal fraud. It's usually a stolen SSN.
"UCC 1-308 voids your debt"
Writing "without prejudice" or reserving rights under UCC 1-308 does not cancel any debt. Courts consistently reject it.
"Accepted for value" / strawman
Endorsing bills "A4V", or claiming a secret Treasury account or strawman pays your debt, is a debunked theory courts sanction.
"The bank lent no real money"
The argument that loans are void because banks create money has been rejected by every court that has heard it.