What is the new FCRA law?

Asked by: Solon Bergstrom  |  Last update: May 26, 2026
Score: 4.1/5 (30 votes)

Recent updates to the FCRA (Fair Credit Reporting Act) focus on removing medical debt from credit reports, restricting "trigger leads," and clarifying federal preemption over state laws, primarily through CFPB rules in 2025 that ban lenders from using most medical info and stop the sale of buyer info without consent, while reinforcing national standards for reporting.

What is the FCRA law passed by Congress?

The Act (Title VI of the Consumer Credit Protection Act) protects information collected by consumer reporting agencies such as credit bureaus, medical information companies and tenant screening services. Information in a consumer report cannot be provided to anyone who does not have a purpose specified in the Act.

How to use FCRA to remove collections?

You can use the Fair Credit Reporting Act (FCRA) to remove collections by disputing inaccurate, outdated, or unverifiable items with credit bureaus, forcing them to investigate and delete unverified info, or by negotiating with agencies, though valid debts usually stay for 7 years unless you dispute errors or request goodwill removals after paying. The key is disputing errors like identity theft, wrong balances, or old, paid accounts that haven't dropped off, as the FCRA mandates removal of unverified, incorrect data, not all collections.

What is the new FCRA law passed in 2025 in the USA?

CFPB Issues Rule that FCRA Preempts State Measures Barring Medical Debt. The Consumer Financial Protection Bureau (CFPB) issued an interpretive rule on October 20, 2025 stating that the Fair Credit Reporting Act (FCRA) preempts state measures barring medical debt in consumer credit reports.

What law allows you to remove negative items from your credit report?

15 U.S. Code § 1679c - Disclosures. “You have a right to dispute inaccurate information in your credit report by contacting the credit bureau directly.

FCRA and FACTA Explained for the NMLS Exam

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How to raise your credit score 100 points in 30 days?

For most people, increasing a credit score by 100 points in a month isn't going to happen. But if you pay your bills on time, eliminate your consumer debt, don't run large balances on your cards and maintain a mix of both consumer and secured borrowing, an increase in your credit could happen within months.

Is medical debt going to be removed from a credit report?

"California banned medical debt from appearing on credit reports because we recognized this practice as harmful to struggling consumers and not helpful in determining creditworthiness. Let me be clear: This remains the law in California.

What is the new rule for credit cards?

Under the new credit card RBI rules India rolled out, minimum payment calculations have been standardised across all issuers. The minimum due amount must now include at least 5% of the outstanding balance plus all fees.

What is the FCRA 10 year rule?

cases, a consumer reporting agency may not report negative information that is more than seven years old, or bankruptcies that are more than 10 years old. you only to people with a valid need -- usually to consider an application with a creditor, insurer, employer, landlord, or other business.

How to get rid of collections without paying?

To get rid of debt collectors without paying, you can send a formal "cease and desist" letter to stop communication (except for lawsuits), dispute the debt in writing if you believe it's inaccurate or too old (beyond the statute of limitations), or file complaints with the CFPB or FTC if they violate Fair Debt Collection Practices Act (FDCPA) rules, but bankruptcy is a last resort for overwhelming debt, as legal options focus on stopping collection tactics, not automatically erasing valid debts. 

How to get 800 credit score in 45 days?

Getting an 800 credit score in just 45 days is challenging, as significant scores usually take time, but you can make rapid progress by focusing on paying down credit card balances to lower utilization (under 30%, ideally under 10%), paying all bills on time, disputing errors on your credit report, and possibly becoming an authorized user on a trusted account, while avoiding new credit applications. The most impactful actions for quick changes involve reducing high balances and fixing mistakes, as payment history and utilization are key factors. 

What is the 7 7 7 rule for collections?

The "777 rule" in debt collection, also known as the 7-in-7 rule, is a CFPB regulation (Regulation F) limiting calls: collectors can't call more than 7 times in 7 days for a specific debt, nor call within 7 days of a conversation about that debt. It aims to prevent harassment, applying to calls, texts, and emails, though exceptions exist, and the presumption of compliance can be rebutted by aggressive call patterns like rapid succession or highly concentrated calls.

How to use the FCRA law to remove collections?

You can use the Fair Credit Reporting Act (FCRA) to remove collections by disputing inaccurate, outdated, or unverifiable items with credit bureaus, forcing them to investigate and delete unverified info, or by negotiating with agencies, though valid debts usually stay for 7 years unless you dispute errors or request goodwill removals after paying. The key is disputing errors like identity theft, wrong balances, or old, paid accounts that haven't dropped off, as the FCRA mandates removal of unverified, incorrect data, not all collections.

Is it true that after 7 years your credit is clear?

It's partly true: most negative items like late payments and collections are removed from your credit report after about seven years, but the underlying debt often still exists, and bankruptcies (Chapter 7) last 10 years, so your credit isn't entirely "clear" but mostly refreshed from old negatives. The 7-year clock starts from the date of the original delinquency, not when you paid it off or sent to collections, and the debt itself can still be pursued by collectors.

Is cleaning your credit legal?

No one promising to repair your credit can legally remove information if it's both accurate and current. Sometimes companies will say they can help, but many are scams.

What is the 524 rule with credit cards?

Chase's 5/24 rule means that you can't be approved for most Chase cards if you've opened five or more personal credit cards (from any card issuer) within the past 24 months.

What is the Biden medical debt rule?

The rule removes a financial information exception for medical accounts and adds a restriction that forbids consumer reporting agencies from supplying medical account information to creditors when they determine a person's ability to take on new debt or expand existing obligations.

What is the medical debt Forgiveness Act 2025?

About the debt relief program

Public Health partnered with the non-profit organization Undue Medical Debt to implement the program. Residents started to receive letters to say their debt was canceled in May 2025 and, as of December 2, 2025, over $363 million of medical debt has been erased for over 171,000 residents.

How to get an 800 credit score in 45 days?

Getting an 800 credit score in just 45 days is challenging, as significant scores usually take time, but you can make rapid progress by focusing on paying down credit card balances to lower utilization (under 30%, ideally under 10%), paying all bills on time, disputing errors on your credit report, and possibly becoming an authorized user on a trusted account, while avoiding new credit applications. The most impactful actions for quick changes involve reducing high balances and fixing mistakes, as payment history and utilization are key factors. 

How to remove things from a credit report without paying?

And they have to do it for free. To correct mistakes in your report, contact the credit bureau and the business that reported the inaccurate information. Tell them you want to dispute that information on your report.

Did Congress pass the FCRA law?

Public exposure of the industry resulted in Congressional inquiry and federal regulation of CRAs. Years of legislative leadership by Representative Leonor Sullivan and Senator William Proxmire resulted in the passage of the FCRA in 1970.