What is the Fair Credit Reporting Act?

The Fair Credit Reporting Act (FCRA) is a law that was created to protect the privacy of individuals and to ensure accurate credit reporting and creditworthiness. The FCRA is enforced by the Federal Trade Commission (FTC). This law applies to both individuals and businesses in California. The main purpose of the FCRA is to promote accuracy, fairness, and privacy of consumer information that is held by consumer reporting agencies (CRAs). CRAs are companies that collect and maintain credit information about individuals and businesses, such as credit bureaus and debt collection agencies. The FCRA sets certain restrictions on how CRAs can use and share the information they collect. Under the FCRA, CRAs must provide individuals with a copy of their credit report upon request. In addition, the FCRA also limits how long CRAs can hold negative information on individuals’ credit reports and requires CRAs to correct any inaccurate information. The FCRA also requires businesses to notify individuals if they use their credit information to make an adverse decision. This includes denying someone’s credit application or raising their interest rates. Businesses must also provide notice to individuals when their information is disclosed to third parties. Finally, the FCRA stipulates that individuals may challenge and dispute the accuracy of information on their credit reports. Overall, the Fair Credit Reporting Act was created to help ensure that individuals in California have access to accurate credit information and to protect their privacy. It provides individuals with the right to access and dispute the information in their credit reports, as well as to be notified when their information is being used to make a decision that could negatively affect them.

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What is the Fair Credit Reporting Act?

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