The ______ is a federal statute that imposes restrictions and requirements on consumer reporting agencies.

• A. FCRA
• B. FACTA
• C. GLBA
• D. FDCPA

Answer: (A)

The Fair Credit Reporting Act is the federal statute that governs how consumer reporting agencies collect, use, and share information about consumers. It sets who can access a consumer’s credit report, for what purposes, and under what conditions, while also requiring accuracy and giving consumers rights to review and dispute information. It mandates procedures to ensure information is up to date and accurate, requires disclosures when reports influence certain decisions (like credit, employment, or insurance), and gives consumers the ability to correct errors, place fraud alerts, or request credit freezes. It also imposes duties on furnishers of information to report accurately and promptly.

Other options address different areas: FACTA is an amendment to FCRA that broadens protections related to identity theft and access to reports; GLBA governs privacy and safeguarding of financial information by financial institutions; FDCPA targets the conduct of debt collectors. This makes FCRA the primary statute governing consumer reporting agencies.