Which term describes the established procedures that consumer reporting agencies must follow in order to ensure that records are confidential, accurate, relevant, and properly used?

Which term describes the established procedures that consumer reporting agencies must follow in order to ensure that records are confidential, accurate, relevant, and properly used?

• A. Investigative Consumer Report
• B. Unlawful Insurance Fraud
• C. Solvency
• D. Fair Credit Reporting Act

Answer: (D)

Rules govern how consumer reporting agencies handle information to protect privacy and ensure accuracy, relevance, and proper use. This framework is provided by the Fair Credit Reporting Act, which establishes the procedures these agencies must follow. It sets standards for confidentiality, accuracy, and the legitimate purposes for which reports can be accessed, and it gives consumers rights to view and dispute information in their files. The act also outlines how investigations are conducted when disputes arise and clarifies disclosures and consent requirements for reports used in decisions like credit, employment, or insurance. While a specific type of report—an investigative consumer report—exists under this framework, the overall term describing the established procedures is the Fair Credit Reporting Act. Solvency and unlawful insurance fraud do not describe these information-handling procedures.

Rules govern how consumer reporting agencies handle information to protect privacy and ensure accuracy, relevance, and proper use. This framework is provided by the Fair Credit Reporting Act, which establishes the procedures these agencies must follow. It sets standards for confidentiality, accuracy, and the legitimate purposes for which reports can be accessed, and it gives consumers rights to view and dispute information in their files. The act also outlines how investigations are conducted when disputes arise and clarifies disclosures and consent requirements for reports used in decisions like credit, employment, or insurance. While a specific type of report—an investigative consumer report—exists under this framework, the overall term describing the established procedures is the Fair Credit Reporting Act. Solvency and unlawful insurance fraud do not describe these information-handling procedures.