What is the main purpose of the Fair Credit and Reporting Act?

The main purpose of the Fair Credit and Reporting Act (FCRA) is to protect consumers regarding their credit information. It establishes guidelines for the collection, dissemination, and use of consumer credit information, ensuring that consumers have rights concerning their credit reports. This includes the right to know what information is in their credit files, the ability to dispute inaccuracies, and the requirement that credit reporting agencies provide accurate information.

By setting these standards, the FCRA aims to protect consumers from unfair practices and discrimination based on their credit history, improving the transparency and fairness in the lending process. The act is fundamental in creating a balance between the needs of businesses to obtain credit information and the rights of consumers to have their information handled fairly and responsibly.