Definition
The Fair Credit Reporting Act (FCRA) regulates the credit reporting industry, including credit bureaus, consumer rights and establishing who has a permissible purpose to review credit reports.
Analysis
The FCRA limits the release of private credit data to those authorized to receive such sensitive consumer information. It is designed to provide some level of privacy to a consumer.
Lenders that provide credit information to credit bureaus are required to only transmit accurate data, and to investigate any disputes originated by the consumer.
The FCRA was amended in 2003 by the Fair and Accurate Credit Transactions Act, which further expanded consumer rights.
