A consumer protection law that regulates the disclosure of consumer credit reports by consumer/credit reporting agencies and establishes procedures for correcting mistaes on ones credit record.
One of the disclosures your mortgage professional should have you review and sign is regarding the Fair Credit Reporting Act. Request a copy of this disclosure to review your rights.
Another way this law protects consumers is that the credit reporting agencies must notify consumers if it re-inserts information that was once disputed by a consumer within 5 days, in writing.
The Fair Reporting Credit Act is enforced by the Federal Trade Commission and allows individuals to challenge and fix any negative aspects that they can prove don't belong on their credit report.
Another benefit is the right to order and receive one free copy of your credit report per year. This further protects you, the consumer, and allows you to monitor your credit report for inaccurate or unauthorized reporting.
If there's erroneous information on your credit report, you can dispute the information with the credit bureau. Depending on the nature of the dispute, it may effect your credit score and getting it corrected could help raise your score.
If a person's credit report is drawn without their permission, there are significant fines and penalties that will be charged to the person who drew the report.