Alabama Private Investigator Practice Exam

The Fair Credit Reporting Act (FCRA) specifically governs the collection, dissemination, and use of consumer credit information. This federal law aims to ensure fairness, accuracy, and privacy of the information contained in the files of consumer reporting agencies. The FCRA sets the standards for how credit information can be shared and requires that consumers be informed when such information is being used against them, for example, when denying credit.

The FCRA also grants consumers the right to request their credit report, dispute inaccuracies, and be notified in case of adverse actions. This is essential in maintaining consumer rights and enabling individuals to have control over their personal financial data.

Other options such as HIPAA focus on the protection of medical information, FERPA pertains to the privacy of student educational records, and SOX relates to corporate governance and financial disclosures, which do not address credit information specifically. Hence, the FCRA is the law that must be referenced when dealing with the release and managing of credit information.