Fair Credit Reporting Act [FCRA] Law and Legal Definition

Fair Credit Reporting Act is a federal law in the U.S. This Act provides for collecting, disseminating and use of consumer information. The Act provides that the banking system is dependent upon fair and accurate credit reporting. Inaccurate credit reports directly impair the efficiency of the banking system. Unfair credit reporting methods undermine the public confidence which is essential to the continued functioning of the banking system.

An elaborate mechanism has been developed for investigating and evaluating the credit worthiness, credit standing, credit capacity, character, and general reputation of consumers. Consumer reporting agencies have assumed a vital role in assembling and evaluating consumer credit and other information on consumers.

For example, the State statute, (Washington) provides for disclosures to consumer under FCRA. Rev. Code Wash. (ARCW) § 19.182.070 provides the following:

1. All information in the file on the consumer at the time of request, except that medical information may be withheld. The agency shall inform the consumer of the existence of medical information, and the consumer has the right to have that information disclosed to the health care provider of the consumer's choice. Nothing in this Act prevents, or authorizes a consumer reporting agency to prevent, the health care provider from disclosing the medical information to the consumer. The agency shall inform the consumer of the right to disclosure of medical information at the time the consumer requests disclosure of his or her file.