Question

250 words

Deric wants to buy a new house, and to do so he needs good credit. He has made all his rent, car, and credit card payments on time, so he should have a good credit score. Before he goes to purchase the house, he checks his credit report and finds that he has a low credit score because one of the agencies mishandled his report. This example shows the importance of?

Answer 1

This example given in the question shows the importance of Fair Credit Reporting Act (FCRA)

The purpose of FCRA is to promote accuracy, fairness and privacy of consumer information with the credit reporting agencies.

The purpose is also to protect consumers from mishandling of information (wilful/negligently) or inaccurate information in the credit reports.

The Act is enforced by Federal Trade Commission.

FCRA regulates the furnishers of credit information, credit reporting agencies and users of credit information.

The consumer has the right to recover damages and costs under FCRA if the consumer rights are violated.

Under FCRA, the consumer reporting agencies(CRAs) need to maintain accurate information,