What Is the Purpose of the Fair Credit Reporting Act? | Legal Beagle

 

what is the purpose of the fair credit reporting act

The Fair Credit Reporting Act (FCRA), 15 U.S.C. § , is U.S. Federal Government legislation enacted to promote the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting nrewmovess.tk was intended to protect consumers from the willful and/or negligent inclusion of inaccurate information in their credit nrewmovess.tkd by: the 91st United States Congress. Permissible purpose is defined in Section of the Fair Credit Reporting Act (FCRA). [15 U.S.C. § b] In general. Subject to subsection (c), any consumer reporting agency may furnish a consumer report under the following circumstances and no other. This title may be cited as the “Fair Credit Reporting Act.” § Congressional findings and statement of purpose [15 U.S.C. § ] (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.


Fair Credit Reporting Act | Federal Trade Commission


The Fair Credit Reporting Act protects consumers by ensuring the accuracy of credit reports. Whenever a credit report is pulled, individuals have the right to be told what information is in their report, if it has been used to deny an application and to dispute anything they know to be false. Whenever a credit report is pulled or a credit check conducted, individuals have the right to be told what information is in their report, whether it has been used to deny an application for a loan or a job and to dispute anything they know to be false.

As a consumer, you are what is the purpose of the fair credit reporting act a reasonable expectation of privacy under the FCRA. The Fair Credit Reporting Act protects consumer information in credit reporting and gives individuals the opportunity to dispute errors in their credit history. Background investigations and credit checks rely on information from the FCRA, what is the purpose of the fair credit reporting act.

The Fair Credit Reporting Act protects your rights as a consumer. For instance, if you are applying for a credit card, vehicle loan or mortgage, the lending institution will first seek your what is the purpose of the fair credit reporting act to pull your credit report. They will use information from this report in making their lending decision.

Under the FCRA, you have the right to see the information they use and to correct any false information contained in the report. The FCRA also oversees background checks conducted by potential employers, property managers or organizations who need volunteers. In such instances, you have a right to view any information returned in your background investigation and dispute any incorrect information. The Fair Credit Reporting Act offers consumers a variety of protections as outlined above.

You always have the right to view or contest information in a credit report. In addition, the FCRA requires that certain items not be included in a credit report after a certain period of time has passed.

While this applies to every state in the U. The Fair Credit Reporting Act was passed in by the federal government to regulate the use of personal information by businesses. Credit reporting agencies like Retail Credit Co. At the time, credit reports were being used to deny access to opportunities and services, and consumers were not given the opportunity to view the reports for themselves. The Consumer Credit Reporting Reform Act of instituted many updates to the FCRA, including allowing companies to conduct pre-screening of potential borrowers and share credit reports with certain affiliates.

However, it also adds several protections to protect consumers against identity theft and also ensures that consumers have the opportunity to receive a free annual credit report from each of the major reporting agencies. Danielle Smyth is a writer and content marketer from upstate New York. Her experience includes years of work in the insurance, workers compensation, disability, and background investigation fields.

In addition to being the content writer and social media manager for Alliance Worldwide Investigative Group, she has written on legal topics for a number of other clients.

She owns her own content marketing agency, Wordsmyth Creative Content Marketing www. April 23, About the Author.

 

Fair Credit Reporting Act - Wikipedia

 

what is the purpose of the fair credit reporting act

 

Apr 23,  · The Fair Credit Reporting Act protects consumers by ensuring the accuracy of credit reports. Whenever a credit report is pulled, individuals have the right to be told what information is in their report, if it has been used to deny an application and to dispute anything they know to be false. The official website of the Federal Trade Commission, protecting America’s consumers for over years. The Fair Credit Reporting Act (FCRA), 15 U.S.C. § , is U.S. Federal Government legislation enacted to promote the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting nrewmovess.tk was intended to protect consumers from the willful and/or negligent inclusion of inaccurate information in their credit nrewmovess.tkd by: the 91st United States Congress.