Findings & Purpose of the Fair Credit Reporting Act

The Fair Credit Reporting Act (commonly known as the “FCRA”) is codified at 15 U.S.C 1861, et seq. In enacting this legislation, the United States Congress made several findings: (A)  The banking system is dependent upon fair and accurate credit reporting. Inaccurate credit reports directly impair the efficiency of the banking system, and unfair credit reporting methods undermine the public confidence which is essential to the continued functioning of the banking system.

(B)  An elaborate mechanism has been developed for investigating and evaluating the credit worthiness, credit standing, credit capacity, character, and general reputation of consumers.

(C)  Consumer reporting agencies have assumed a vital role in assembling and evaluating consumer credit and other information on consumers.

(D)  There is a need to insure that consumer reporting agencies exercise their grave responsibilities with fairness, impartiality, and a respect for the consumer's right to privacy.

15 U.S.C. 1681.

The purpose of the Act, therefore is to:

[R]equire that consumer reporting agencies adopt reasonable procedures for meeting the needs of commerce for consumer credit, personnel, insurance, and other information in a manner which is fair and equitable to the consumer, with regard to the confidentiality, accuracy, relevancy, and proper utilization of such information in accordance with the requirements of [the FCRA].

15 U.S.C. 1681.

Questions may be directed to credit reporting attorney, G. John Cento at or 765-280-FCRA.