Fair Credit Reporting Act - Reporting Agencies

The video explains the role of credit reporting agencies, which collect consumer information to provide credit reports and scores. It covers legal requirements for fair practices, including accurate information collection, verification, and dispute processes. Negative information can remain on credit reports for seven years, except bankruptcies, which last up to ten years. The video also highlights consumer protection procedures and introduces major credit reporting agencies like TransUnion, Equifax, and Experian, which must comply with the Fair and Accurate Credit Reporting Act.

What is the primary function of credit reporting agencies?

• To offer financial advice

• To collect consumer information and provide credit reports

• To provide loans to consumers

• To manage consumer bank accounts

What must a reporting agency do if a consumer disputes information on their credit report?

• Notify the consumer to resolve it themselves

• Temporarily remove the information until it is verified

• Immediately remove the information permanently

• Ignore the dispute

How long can negative information, such as defaults, remain on a credit report?

• 5 years

• 7 years

• 10 years

• Indefinitely

Which of the following is NOT a major credit reporting agency?

• FICO

• Experian

• TransUnion

• Equifax

What does the Fair and Accurate Credit Reporting Act require agencies to provide?

• Free credit repair services

• Free access to a credit report once a year

• Free financial counseling

• Unlimited free credit scores