What does the Fair Credit Reporting Act (FCRA) aim to ensure?

What does the Fair Credit Reporting Act (FCRA) aim to ensure?

• A. The accuracy of real estate appraisals
• B. The accuracy of credit-related information used by lenders
• C. The regulation of loan interest rates
• D. The protection of borrowers from predatory lending

Answer: (B)

The Fair Credit Reporting Act (FCRA) aims to ensure the accuracy of credit-related information used by lenders. This federal law was enacted to promote the integrity of consumer credit reporting and to protect consumers from misinformation in their credit reports. It provides rights for consumers, such as the ability to dispute inaccurate information and require credit reporting agencies to investigate such disputes. By ensuring that lenders have access to accurate credit information, the FCRA plays a crucial role in enabling a fair lending process where consumers can receive credit based on their true financial standing. The law also mandates that consumers are notified whenever a negative report is made and have the right to request their credit reports, ensuring transparency and accountability in how lenders use credit information.

The Fair Credit Reporting Act (FCRA) aims to ensure the accuracy of credit-related information used by lenders. This federal law was enacted to promote the integrity of consumer credit reporting and to protect consumers from misinformation in their credit reports. It provides rights for consumers, such as the ability to dispute inaccurate information and require credit reporting agencies to investigate such disputes. By ensuring that lenders have access to accurate credit information, the FCRA plays a crucial role in enabling a fair lending process where consumers can receive credit based on their true financial standing. The law also mandates that consumers are notified whenever a negative report is made and have the right to request their credit reports, ensuring transparency and accountability in how lenders use credit information.