What federal legislation was enacted in 1970 to ensure accuracy in credit-related information used by lending institutions?

The Fair Credit Reporting Act (FCRA), enacted in 1970, is designed to promote the accuracy and privacy of information contained in the files of consumer reporting agencies. The FCRA establishes guidelines for the collection, dissemination, and use of consumer credit information, ensuring that lenders utilize accurate credit-related information when making lending decisions.

This legislation aims to protect consumers from the negative consequences of incorrect data in their credit reports, which can impact their ability to obtain loans, lines of credit, or other financial services. Under the FCRA, consumers have the right to access their credit reports, dispute inaccurate information, and ensure that their credit histories are fairly evaluated by lending institutions.

Other acts mentioned in the options serve different purposes: the Fair and Accurate Credit Transactions Act (FACTA) primarily enhances the FCRA by addressing identity theft, the Home Mortgage Disclosure Act (HMDA) focuses on ensuring that financial institutions provide mortgage data, and the Equal Credit Opportunity Act (ECOA) prohibits discrimination in lending practices. While all these pieces of legislation play crucial roles in consumer protection and the lending process, the FCRA specifically targets the accuracy of credit-related information.