How does the Fair Credit Reporting Act protect consumers?

On Behalf of | Sep 1, 2021 | blog |

Most people would rather keep their credit and related financial information private. Fortunately, the Fair Credit Reporting Act protects citizens of Illinois and the rest of the United States. Here’s a closer look at what the Fair Credit Reporting Act is and how it benefits you.

What is the Fair Credit Reporting Act?

The Fair Credit Reporting Act, or FCRA, became an officially passed law in 1970. The main purpose of the FCRA is to help protect consumers’ information found in credit reports. As you might know, large organizations and credit bureaus are accessing credit-related data all the time. You probably don’t want an employer or any other random person learning every detail regarding your credit history. Since the FCRA was passed, only certain people like landlords, insurance companies and creditors can access this sensitive information.

How the FCRA benefits you

There are several ways that the FCRA provides consumer protection. The FCRA allows you to learn if any of your credit-related information gets used against you. This legislation also allows you to request a file disclosure, which contains the information a consumer reporting agency collects about you.

Sometimes, there is either false or incomplete information about your credit history. Under the FCRA, you can dispute any inaccurate information found on your credit report. The FCRA also allows you to freeze anyone from gaining access to your credit report unless you lift this freeze or give them one-time access.

The Fair Credit Reporting Act protects the rights of consumers and who can view their credit-related information. It also ensures that it’s difficult for someone to discriminate against you based on your credit history.