The Fair Credit Reporting Act (FCRA) is a federal law that was enacted in 1970 to regulate the collection, dissemination, and use of consumer credit information. It aims to ensure that consumer reporting agencies (CRAs) provide fair and accurate information to businesses that use credit reports to make decisions about consumers.
Under the FCRA, CRAs must follow certain procedures when collecting and reporting credit information. For example, they must verify the accuracy of the information before including it in a credit report, and they must correct or delete any information that is inaccurate or outdated.
The FCRA also gives consumers certain rights, such as the right to access their credit reports, to dispute errors, and to place a security freeze on their credit reports. Additionally, the FCRA limits who can access a consumer's credit report and for what purposes. For example, a credit report can only be provided to someone with a legitimate business need, such as a lender considering a loan application.
In summary, the Fair Credit Reporting Act is an important law that helps to protect consumers from inaccurate or unfair credit reporting, and it provides a framework for the responsible use of credit information by businesses.