What does the Fair Credit Reporting Act regulate?

The Fair Credit Reporting Act (FCRA) primarily regulates the use of consumer credit information, which includes how this information is collected, shared, and utilized by credit reporting agencies, creditors, and others. The act aims to protect consumers by ensuring that their credit information is handled fairly and accurately. It grants consumers the right to access their credit reports, dispute inaccuracies, and understand how their credit information is used, particularly when it affects decisions about lending and creditworthiness.

While employment background checks do fall under certain provisions of the FCRA, the act's broader and more significant focus is on consumer credit information itself. This encompasses the rules governing the collection and reporting of information, ensuring transparency and fairness in how consumers are evaluated based on their credit history. Other options, such as consumer insurance policies and real estate transactions, do not fall within the specific regulatory scope of the FCRA.