FAIR Credit Act

The FAIR Credit Act amends the Fair Credit Reporting Act to improve the accuracy of consumer credit reports and provide relief to specific groups of borrowers. It directly affects consumers, creditors, and credit reporting agencies by changing how adverse information is reported and how certain debts are handled. Key provisions include shortening the time most negative credit items remain on a report from ten to seven years and requiring the removal of fully paid or settled debts after 45 days. The bill also prohibits medical debt from appearing on credit reports, offers credit restoration for victims of predatory mortgage lending and deceptive education programs, and allows victims of economic abuse to have related adverse information removed. Additionally, the legislation expands protections against identity theft by enhancing fraud alert options, mandating free credit monitoring for certain vulnerable groups, and ensuring that inquiries resulting from fraud do not negatively impact credit scores.