Definition - What does Fair Credit Reporting Act mean?
The Fair Credit Reporting Act is a federal law passed in 1970 to ensure that credit reporting agencies manage personal information fairly, accurately, and confidentially. The Act controls the collection and use of personal information by credit reporting agencies as well as the access to the personal credit data they store.
SureHire explains Fair Credit Reporting Act
The Federal Trade Commission enforces compliance with the Fair Credit Reporting Act by consumer reporting agencies. The Act provides protection to the consumer by requiring that written consent be obtained prior to an organization or potential employer requesting a credit report. Consumer reporting agencies are only allowed to supply a report to a party that has a permitted purpose defined by the law. Under the act, agencies are required to disclose information and credit scoring to the consumer who may then dispute any of the information contained in the report. The agency is required by the law to investigate any discrepancies and remedy them if necessary by correcting or deleting the information under contention.
