FCRA stands for Fair Credit Reporting Act.
The Fair Credit Reporting Act (FCRA), codified as 15 U.S.C. 1681 et seq., is a U.S. federal law that regulates the collection, dissemination, and use of consumer credit information. It aims to ensure accuracy, fairness, and privacy of consumer information handled by credit reporting agencies (CRAs). This gives consumers the right to access their credit reports, dispute inaccuracies, and control who has access to their credit information.
Key aspects of the FCRA include:
- Accuracy: CRAs must follow reasonable procedures to ensure the accuracy of the information they report.
- Fairness: CRAs must provide consumers with access to their credit reports and the ability to dispute inaccuracies.
- Privacy: The FCRA restricts who can access a consumer's credit report and for what purposes.
Consumer Rights under the FCRA:
- Right to a free annual credit report: Consumers are entitled to one free credit report per year from each of the three major credit bureaus: Equifax, Experian, and TransUnion. You can access these reports at AnnualCreditReport.com.
- Right to dispute inaccuracies: If a consumer finds errors on their credit report, they have the right to dispute the information with the CRA.
- Right to know why credit was denied: If a consumer is denied credit, insurance, or employment based on their credit report, they have the right to know the name and address of the CRA that provided the information.
- Right to opt-out of prescreened offers: Consumers can opt-out of receiving unsolicited credit and insurance offers based on their credit information.
The FCRA plays a vital role in protecting consumers' financial information and ensuring fair access to credit.
