Fair Credit Reporting Act - Users of Information

The video tutorial explains the Fair Credit Reporting Act (FCRA) and its implications for users of credit information. It covers the components of a credit history, the protections and requirements imposed by the FCRA on employers and businesses using credit information, and the process for conducting investigative consumer reports. The tutorial also discusses the necessary steps for employers to follow when performing background checks, including obtaining written permission and providing notice. Finally, it outlines the permissible uses and strict limitations on the use of credit information, emphasizing the importance of notice and the ability to dispute inaccuracies.

What elements are typically included in a credit history?

• Only current transactions

• Only past payments

• Transactions, payments, liens, judgments, and bankruptcies

• Only bankruptcies

What must users of credit information do according to the FCRA?

• Ignore disputes about inaccuracies

• Notify individuals of the use of their credit history

• Keep the credit history confidential

• Share credit history with third parties

What is required before conducting an Investigative Consumer Report?

• No prior notice is needed

• Immediate investigation without consent

• Three days notice and permission from the individual

• Only verbal consent is required

What must be provided to an individual if negative information affects a decision?

• A copy of the credit report

• A written apology

• An opportunity to dispute the information

• A refund of any fees

What is the primary purpose of the FCRA's notice requirements?

• To ensure confidentiality

• To prevent credit history usage

• To allow individuals to remedy inaccuracies

• To increase credit scores