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Fair Credit Reporting Act (FCRA)
The Federal Trade Commission enforces the provisions of the Fair Credit Reporting Act for the purpose of promoting accuracy in the transmission of credit related information and further to make sure that the privacy and confidentiality of such information is maintained. In a broad sense the Fair Credit Reporting Act covers the collection, distribution, and use of all aspects of consumer credit information. Working in tandem with the Fair Debt Collection Practices Act, the Fair Credit Reporting Act is one of the pillars of consumer credit rights in the United States.
Under the provisions of this act, consumer reporting agencies (often incorrectly referred to as "credit bureaus") may collect and use consumer information for the purposes of credit evaluation but must disclose to the consumer, upon request by that person, the information contained in that individual's file. In addition, credit reports may not contain negative information for excessive time periods (usually seven years for most instances but ten for bankruptcies.)
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