Which act establishes procedures for consumer-reporting agencies to follow for confidentiality?

The Fair Credit Reporting Act (FCRA) is the legislation that establishes procedures for consumer-reporting agencies to follow to ensure the confidentiality, accuracy, and integrity of information they collect and share about consumers. Enacted in 1970, the FCRA provides guidelines on how consumer data can be collected, accessed, and used while ensuring that individuals have certain rights concerning their information. This includes the right to access their credit reports, challenge inaccuracies, and understand the implications of their consumer report on loan applications and insurance premiums.

Additionally, the FCRA mandates that consumer-reporting agencies implement reasonable procedures to protect the privacy of consumer information and limit access to those with legitimate needs, such as lenders and employers. This focus on confidentiality and consumer rights plays a significant role in maintaining trust in financial systems and ensuring that consumers have control over their credit histories and reports.