FCRA (Fair Credit Reporting Act)

A U.S. federal law enacted in 1970 that regulates the collection, use, and sharing of consumer credit information by consumer reporting agencies. FCRA establishes requirements for accuracy, privacy, fairness, and limited access to credit reports. It covers not just credit reports but also employment background checks, tenant screening reports, and other consumer reports. Key provisions include permissible purposes for obtaining reports, consumer rights to access reports and dispute inaccuracies, adverse action notices when decisions are based on reports, requirements for reasonable accuracy procedures, limits on report retention and use of outdated information, and consent requirements for certain report uses. FCRA creates obligations for consumer reporting agencies, users of consumer reports, and furnishers of information. Organizations using credit reports or conducting background checks must comply with FCRA requirements including providing required notices, obtaining appropriate authorization, and following adverse action procedures.