Which law regulates how Consumer Reporting Agencies collect and share consumer information?

The Fair Credit Reporting Act (FCRA) is the key legislation that regulates how Consumer Reporting Agencies (CRAs) collect and share consumer information. This law establishes guidelines to ensure that consumers have access to their credit information and provides rights to consumers regarding their credit reports. It mandates that CRAs must ensure the accuracy and fairness of information in consumer reports, and they must follow specific procedures for collecting, handling, and sharing this data.

Under the FCRA, consumers have the right to dispute inaccuracies in their credit reports and must be informed if their credit information is used against them, such as in a credit application. This law is fundamental in protecting consumers from potential misuse of their credit information and ensuring transparency in the reporting process. As a result, the FCRA plays a critical role in promoting responsible credit reporting practices and safeguarding consumer rights in connection with their personal financial information.