What is the Fair Credit Reporting Act?
The Fair Credit Reporting Act (FCRA) is a federal law that protects consumers’ rights in regards to their credit reports and credit score. This law is applicable in Washington State and enforces certain rules and regulations that must be followed by debtors and creditors. The Fair Credit Reporting Act requires that credit reporting agencies must give consumers access to their credit reports and the ability to dispute information on their reports that they believe is wrong or inaccurate. This act also protects consumers from identity theft and fraud; allows them to access their credit score; and stops creditors from using unfair, inaccurate or misleading information when deciding whether to provide a loan, extend credit, or set the terms of any credit agreement. The Fair Credit Reporting Act also requires that creditors provide a notice to consumers when information in their credit reports is used to deny them credit or increase their interest rates, and gives them the opportunity to correct any errors. Furthermore, the Act requires that creditors give notice to consumers before they send negative information to credit bureaus. This allows consumers to be aware of their rights and make sure their credit report is accurate. In summary, the Fair Credit Reporting Act is a federal law that protects consumers in regards to their credit reports and credit scores. This law allows them to access their credit report, dispute any inaccurate or incomplete information, and prevents creditors from using unfair methods when evaluating the creditworthiness of applicants.
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