Fair Credit Reporting Act - FCRA

Dictionary Says

Definition of 'Fair Credit Reporting Act - FCRA'


The act that regulates the collection of credit information and access to your credit report. It was passed in 1970 to ensure fairness, accuracy and privacy of the personal information contained in the files of the credit reporting agencies. It requires that any person or entity requesting your report must demonstrate a permissible purpose for the information before it is released. It also designates the Federal Trade Commission (FTC) as the enforcement authority for the provisions of the act.

Investopedia Says

Investopedia explains 'Fair Credit Reporting Act - FCRA'


Under this act, you have the right to:
  • Know what's in your file.
  • Free file disclosure once per year from each of the major credit bureaus.
  • Ask for your credit score (there may be a fee).
  • Verify accuracy of report when required for employment purposes.
  • Notification if your file has been used against you.
  • Dispute and correct information that is incomplete or inaccurate.
  • Remove outdated, negative information (seven-years old or 10 years in the case of bankruptcy).

Related Video for 'Fair Credit Reporting Act - FCRA'

comments powered by Disqus
Hot Definitions
  1. Legal Monopoly

    A company that is operating as a monopoly under a government mandate. A legal monopoly offers a specific product or service at a regulated price and can either be independently run and government regulated, or government run and regulated.
  2. Closed-End Fund

    A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange.
  3. Payday Loan

    A type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash.
  4. Securitization

    The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors.
  5. Economic Forecasting

    The process of attempting to predict the future condition of the economy. This involves the use of statistical models utilizing variables sometimes called indicators.
  6. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
Trading Center