What is a fair credit reporting act?

A Fair Credit Reporting Act (FCRA) is a law that helps protect consumers when it comes to their credit reports and credit scores. The purpose of the act is to ensure that information reported by credit reporting agencies is accurate and up-to-date. Under the FCRA, if credit reporting agencies make a mistake, they must fix it or delete the incorrect information. Additionally, credit reporting agencies must provide consumers with the chance to dispute inaccurate information. The FCRA also requires that credit reporting agencies protect sensitive information from unauthorized disclosure. To protect consumers from identity theft, credit reporting agencies must also maintain secure records. In California, state laws have extended the rights of consumers even further. The California Consumer Credit Reporting Agencies Act (CCRAA) gives consumers the right to know why they have been denied credit and to be notified if their credit reports are sold to a third party. Additionally, the CCRAA requires the credit reporting agencies to provide consumers with a free credit report each year. Overall, the FCRA and CCRAA are important laws that help protect consumers from inaccurate or unauthorized credit reporting. These laws help ensure that consumers have access to accurate information about their credit when they need it.

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What is a fair credit reporting act?

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