Fair Act Credit Act

[Name of the Institute]Fair Credit Reporting Act

Introduction

The Fair Credit Reporting Act is a United States Federal law. The Fair Credit Act regulates the compilation, distribution and also uses the information of consumer that also includes the credit information of consumer. This act actually based on the Act of (FDCPA) “Fair Debt Collection Practices Act” that basically forms (Blair , 1984) the credit rights of the consumer in the United States of America and was passed in the year 1970. Private litigants and Federal Trade Commission of United States of America enforced the act. The Fair Credit Reporting Act promotes fairness, accuracy and privacy of data is used by the consumer reporting agencies.

Discussion

Overview

The Fair Credit Act was passed because of the concerns about the accuracy of credit file information. The Act evaluates the quality of the compliance management system of the bank. It verifies the dependence that could be set on the bank's agreeability administration management system, incorporating internal controls and strategies (Askew,2001) performed by the person(s) that are responsible for the review of the compliance of for Fair Credit Reporting Act. It figures out the compliance of the bank with Fair Credit Reporting Act. It initiates the corrective action if there is deficiency in the internal control or if the violations in the regulations are identified.

Regulations

Consumer have right to know about his credit Report.

The credit report can only be seen by authorized by users

Consumer have right to debate on the error in information or inaccurate information

The information that is negative can be subjected to a time horizon or time limit

Consumer has the right to place the red flag in the credit report

Remove consumer name from marketing lists upon request

Background

The Fair Credit Reporting Act was initially enacted October 26th, in the year 1970, an act in order to amend the Act of Federal Deposit Insurance that require insured banks for the maintenance of various records. The Act has amended in order to require the certain transactions in the currency of United States of America that needs to be reported for the Treasury Department and also for the other purposes. The Act was written as an amendment in order to add the title VI for the Act of Consumer Credit Protection, enacted June 29, 1968.It was passed because the consumer credit was exploding and therefore, the strength of the private companies that had kept the track of the payment behavior of the consumer. Credit reporting organizations and agencies, once local and small, were solidifying to make a national credit reporting framework, and the law offered a customer friendly counterweight to keep the playing field even.

Explanation of Regulations

The reporting agencies of consumers include financial agencies and credit bureaus for instance information about the rental history records. Under the Fair credit reporting Act the consumer rights stipulates that,

Section 604: Consumer have right to know about his credit Report

The consumer has the right to recognize what is in his record. The customer may ask and can acquire all the qualified data about him in ...