Customer Relationship Management (CRM) 2025 – 400 Free Practice Questions to Pass the Exam

The Fair Credit Reporting Act (FCRA) is the legislation that specifically governs the collection, dissemination, and use of consumer credit information. Enacted in 1970, its primary purpose is to ensure fairness, accuracy, and privacy of information in the files of consumer reporting agencies. It establishes guidelines regarding the rights of consumers in relation to credit reporting, including the ability to access their credit reports, dispute inaccuracies, and be informed when information is provided to a third party.

This act also mandates that consumer reporting agencies only collect and provide information that is relevant and necessary, thereby protecting consumers from potential misuse or abuse of their credit information. In contrast, the other options pertain to different areas of regulation. The Gramm-Leach-Bliley Act focuses on financial institutions and the protection of consumers’ personal financial information; the California Consumer Privacy Act is centered around privacy rights specific to California residents; and the General Data Protection Regulation is a broad data privacy law applicable to individuals in the European Union. Each of these acts has its scope and purpose, but the FCRA is the specific legislation that outlines the rules governing credit reporting.