Fair Credit Reporting Act (FCRA)

 The Fair Credit Reporting Act (FCRA) is a US federal law that was enacted in 1970 to promote accuracy, fairness, and privacy of information contained in consumer credit reports. The FCRA governs the activities of consumer reporting agencies (CRAs), which are companies that collect and maintain information on consumers' credit histories.

The FCRA requires CRAs to maintain reasonable procedures to ensure the accuracy of the information in their credit reports and to investigate disputed information. It also requires CRAs to provide consumers with a free copy of their credit report once a year and to provide them with a notice of their rights under the FCRA.

The FCRA also regulates who can access consumer credit reports and for what purposes. Access is limited to those who have a permissible purpose, such as a lender considering a consumer's application for credit or an employer considering the consumer for employment.

The FCRA has been amended several times, with the most recent amendment being the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018. This amendment provides consumers with additional protections, such as the right to request a security freeze on their credit report and the right to place a fraud alert on their credit report if they suspect identity theft.

 All credit bureaus, banks and credit card companies operate as private businesses, meaning they are not regulated by the government. The Consumer Financial Protection Bureau (CFPB) and the FCRA were put in place to help protect consumer rights by regulating the accuracy, fairness and privacy of credit information.

Per the FCRA, you have the right to access your credit reports, challenge incorrect or incomplete information, limit who can access your reports, seek damages from violators, be told if your credit report is used against you, and more. Individual states may have additional consumer reporting laws beyond FCRA provisions.