There are many legislative pieces that allow consumers the privacy they wish for and the ability to dispute any discrepancies they notice in their personal information. One such legislation is the FRCA, or the Fair Credit Reporting Act. The FRCA is an act that all people dealing with credit should be aware of, as it can arm consumers with laws that help protect their privacy. Let’s have a look at what the FRCA is, what it does, and why it’s so important.
What is the FRCA?
The FRCA stands for the Fair Credit Reporting Act, which is a federal law that regulates how your credit information is accessed. The FRCA was passed in 1970 in efforts to bring privacy and transparency to the operations of credit reporting agencies.
What does FRCA do?
The FRCA limits the type of data that credit reporting agencies can collect and share. The FRCA allows credit bureaus to collect information regarding a person’s debts, employment history, addresses, arrest records, and other obligations that the person may have.
Under the FRCA, not just anyone can access your credit information, but rather they must request to see your information, and thereafter only are they allowed access to it. To exemplify, employers may want to see your credit information but must first request it with your permission first.
How does the FRCA help me?
The FRCA allows you to be protected from unauthorized access to your credit information. Furthermore, it limits how much access credit reporting agencies have into your personal credentials. Also, the FRCA allows you to see your own credit report for free every 12 months from each of the three major credit bureaus. The FRCA allows you to report any discrepancies in your credit report. Further, this act notifies you whenever your information has been used against you. Such protections and rights are given by the Fair Credit Reporting Act, to allow consumers the peace of mind their personal information is in safe standing.