FCRA Credit Reporting Regulation
United States
1970
Consumer Protection
Overview
The Fair Credit Reporting Act (FCRA), enacted in 1970, is a U.S. federal law that promotes the accuracy, fairness, and privacy of consumer information contained in the files of credit reporting agencies (CRAs). It regulates how consumer credit data is collected, shared, and used by lenders, employers, insurers, and others.FCRA grants individuals the right to access their credit reports, dispute inaccuracies, and request corrections. It limits the use of credit reports to permissible purposes such as lending, employment, and insurance underwriting. The law is enforced by the Federal Trade Commission (FTC), the Consumer Financial Protection Bureau (CFPB), and state attorneys general.This regulation applies to banks, credit bureaus, lenders, collection agencies, insurance providers, and employers using credit reports for decision-making.
Key Obligations
- Credit bureaus must ensure accuracy and investigate consumer disputes
- Users of credit reports must obtain consumer consent and disclose adverse actions
- Consumers are entitled to a free annual credit report from each major CRA
- Sensitive data such as bankruptcies must be removed after a fixed period
- Employers must provide notice and get permission before using a report for employment
- Entities must follow procedures for data security and permissible use
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