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Fair Credit Reporting Act

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Home Real Estate Terms Glossary Fair Credit Reporting Act

What is the Fair Credit Reporting Act?

Passed in 1970, the Fair Credit Reporting Act is a federal act that details and specifies how organizations can collect and use consumer credit information. This federal law is important and helps ensure the fairness, accuracy, and privacy of the sensitive information present in consumer credit bureau files. Did you know that under this act, all consumers can view the information present in their credit file as well as dispute inaccurate information?

Examples of Fair Credit Reporting Act

  • Example 1: FCRA in insurance
  • Example 2: FCRA in employment

Here’s Investopedia’s definition of the Fair Credit Reporting Act .

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