What is the Fair Credit Reporting Act?

The Fair Credit Reporting Act (FCRA) is a federal law in the United States that was enacted in 1970. It governs how consumer credit information is reported and used. This law protects consumers from inaccurate or outdated credit reporting and imposes obligations on those who collect, compile and disseminate consumer credit data. In California, the FCRA regulates both the furnishing and obtaining of credit. It requires that any consumer reporting agency provide accurate information to creditors and debt collectors. When businesses request a report on a consumer, they must show that their request is based on a legitimate purpose and is in accordance with the FCRA. Businesses must also provide the consumer with a copy of the report and provide a copy of a Summary of Rights under the FCRA. The FCRA also protects consumer privacy by placing restrictions on how consumer data is shared. It limits the ability of lenders to share information with other lenders without permission. Finally, the FCRA requires that any consumer reporting agency investigate any disputes made by a consumer in relation to their credit report. The Fair Credit Reporting Act is a valuable consumer protection measure that ensures consumer credit information is reported accurately and used responsibly. It provides safeguards against inaccurate or outdated reporting and helps ensure consumer privacy is respected.

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What is the Fair Credit Reporting Act?

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