Fair Credit Reporting Act

The purpose of FCRA18 (which is also enforced by the FTC) is to promote both accuracy in consumer reports and the privacy of the information contained in them. Companies that gather and sell this information are generally called consumer reporting agencies ("CRAs"), the most common type of which is the credit bureau. The activities of other CRAs, such as tenant or employment screening services, or agencies whose data is limited to individuals' check writing history, are also governed by the FCRA. CRAs may sell information to creditors, employers, insurers, and other businesses in the form of a consumer report. The security of consumer information in the hands of credit bureaus and data brokers is cause for concern, and not just for consumers. The examples of data broker ChoicePoint and third-party payment processor CardSystems Solutions, Inc., ("CardSystems") illustrate the swift and severe consequences that can be meted out by consumers, customers, investors, and regulators when sensitive personal consumer information falls into the wrong hands.