New Bill Makes Changes to Fair Credit Reporting Act

There are many new changes that will take place in the new Fair Credit Reporting Improvement Act  of 2014.

Here are some of the changes that we find to be most dramatic and important to take note of:

  • All bankruptcies would have to be removed after seven years instead of after 10 years.
  • All collections would have to be removed after four years instead of after seven years.
  • All late payments and other adverse items would have to be removed after four years instead of after seven years.
  • Any and all adverse debts would have to be removed within 45 days of payment or settlement.
  • Any adverse information regarding a private student loan would have to be removed if the debtor makes nine consecutive payments on time.
  • If the credit bureaus sell a credit score to a consumer the fee cannot exceed $10 for the score. The fees cannot apply when the consumer is entitled to a free credit score.
  • Disputed credit information may not be considered by credit scoring models in any adverse manner.
  • All supporting documents provided by consumers to the credit bureaus have to then be provided to the furnishers of the disputed credit information (normally a bank or a collection agency), despite whether or not the credit bureaus believe it to be “relevant.”
  • The credit bureaus would have to provide consumers with a copy of “all” information used by the credit bureaus in carrying out their investigation.
  • Employers can only use credit reports if the information is a “valid” predictor of employee performance for the specific position of employment, and is more reliable than alternative methods, as determined by the CFPB.
  • Consumers cannot be charged for an employment screening report.
  • The credit bureaus may not provide services after the end of a promotional period UNLESS the consumer specifically agrees to continue receiving the product or service.


These changes benefit the consumer, making sure that their credit history is protected and allowing for an easier transition to proving a change in financial climate.

To read about all changes, find the original article written by John Ulzheimer at