What is the Fair Credit Reporting Act?
The Fair Credit Reporting Act (FCRA) is the federal law regulating credit reporting companies. This law protects consumers’ rights, such as the right to review and contest information in their credit profiles. It also specifically defines who can access the information in a credit profile, and how you are notified of this activity. You may obtain information about the FCRA, including its full text, at http://www.ftc.gov/bcp/conline/edcams/fcra/index.html.
The Fair Credit Reporting Act (FCRA) allows a consumer to challenge the information on his or her credit report on the basis of completeness and accuracy. When a consumer files a dispute, the credit bureaus must contact the creditor and confirm that the information is accurate, verifiable, and not obsolete. If, within 30 days, the credit bureau has not received verification from the creditor, the credit bureau must promptly delete the credit listing.
As the American economy boomed in the years following World War II due to increased household demand, credit reports became a central aspect of bank lending and, as a result, the entire American economy. Pressure from consumer groups caused Congress to pass the Fair Credit Reporting Act to regulate the relationship between consumers, creditors, and the credit bureaus. In enacting the FCRA in 1970, Congress specifically recognized that consumer credit “is dependant upon fair and accurate credit reporting.” In 1996, when Congress modified the act to better suit the increasingly “computerized” economy and the world of “instant credit,” they put credit report accuracy at the forefront. Credit report accuracy remains the core goal of the FCRA. Because small differences in a consumer’s credit score can influence the cost or other terms of the credit offer, or even make the difference between getting approved or denied, accuracy of credit reports is paramount. The law provides that credit rep
The Fair Credit Reporting Act (FCRA) is the federal law that governs the consumer credit reporting industry. This law was enacted to protect the consumer’s right to privacy. The FCRA outlines the situations or permissible purposes for which a company or organization may request a consumer’s credit report. You may obtain a copy of the FCRA from the Federal Trade Commission.
The Fair Credit Reporting Act was enacted in 1970 and last amended November 12, 1999. Section 602 (15U.S.C1681) states the purpose of the FCRA. S602. Congressional findings and statement of purpose a) Accuracy and fairness of credit reporting. The Congress makes the following findings. (1) The banking system is dependent upon fair and accurate credit Reporting. Inaccurate credit reports directly impair the efficiency of the banking system, and unfair credit reporting methods undermine the public confidence which is essential to the continued functioning of the banking system. (2) An elaborate mechanism has been developed for investigating an evaluating the credit worthiness, credit standing, credit capacity, character, and general reputation of consumers. (3) Consumer reporting agencies have assumed a vital role in assembling an evaluating consumer credit and other information on consumers. (4) There is a need to insure that consumer reporting agencies exercise their grave responsibili
