Consumer Credit Reporting Reform Act

The Consumer Credit Reporting Reform Act, also known as the Fair Credit Reporting Act (FCRA) of 1970, is a US federal law that regulates the collection, distribution, and use of consumer credit information. It was designed to protect the privacy of consumers by regulating the accuracy and reliability of consumer credit information and preventing abusive practices by credit reporting agencies. The act requires that credit reporting agencies provide consumers with a report that includes information on any disputes they have regarding received credit information, information on negative credit reports and details on the agencies’ purpose for collecting credit information. The FCRA also requires that any credit reports or investigations made against a consumer be done with the prior consent of said consumer. Furthermore, the act requires that credit reporting agencies inform a consumer of any requests for credit information about that consumer and also requires that credit reporting agencies notify a consumer when a report has been updated or added to. Finally, the act provides consumers with the right to dispute the accuracy of the information contained on their credit reports.