Benefits of the Fair Credit Reporting Act

The benefits of the Fair Credit Reporting Act are outstanding. A great tool for consumers and private citizens to safeguard their credit profiles. Title VI of the Consumer Credit Protection Act protects information collected by consumer reporting agencies such as credit bureaus, medical information companies and tenant screening services.

Information in a consumer report cannot be provided to anyone who does not have a purpose specified in the Act.

Companies that provide information to consumer reporting agencies also have specific legal obligations, including the duty to investigate disputed information.

In addition, users of the information for credit, insurance, or employment purposes must notify the consumer when an adverse action is taken on the basis of such reports. The Fair and Accurate Credit Transactions Act added many provisions to this Act primarily relating to record accuracy and identity theft.

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