Fair Credit Reporting Act

The Fair Credit Reporting Act (FCRA) is a federal law that regulates credit reporting agencies and compels them to insure the information they gather and distribute is a fair and accurate summary of a consumer’s credit history.

The FCRA is chiefly concerned with the way credit reporting agencies use the information they receive regarding your credit history. The law is intended to protect consumers from misinformation being used against them. It offers very specific guidelines on the methods credit reporting agencies use to collect and verify information and outlines reasons that information can be released.

The law was passed in 1970 and amended twice. It is primarily aimed at the three major credit reporting agencies — Experian, Equifax and TransUnion — because of the widespread use of the information those bureaus collect and sell. The law also applies to banks, credit unions and agencies that sell medical records and check writing or rental history records, as well as any businesses that use information on credit reports for hiring purposes.

The FCRA has come up often in media reports because advocacy groups question the accuracy of the information credit reporting agencies gather and consumers’ ability to dispute that information and have it removed from their credit report.

Article By: AL KRULICK

Source: Debt.org