Free Essay

Fair Credit Reporting Act, 1970

In: Computers and Technology

Submitted By sblanson
Words 422
Pages 2
Fair Credit Reporting Act, 1970
Introduction to Computer Applications BIS/220

Fair Credit Reporting Act, 1970

The federal Fair Credit Reporting Act which is also known as FCRA was enacted in 1970 to uphold the precision, equality, and confidentiality of any personal information that is in the files and reported by the consumer reporting agencies or credit reporting agencies also known as CRAs. There are many types of CRAs, including credit bureaus and specialty agencies. CRAs gather reports on people for different industries, which can include credit card companies, banks, property-owners, businesses, and other entities. Special protections provided by the FCRA are for credit reports, investigatory consumer reports, and background checks for employment. Since 1970 the FCRA is a multifaceted decree that has considerably been reformed by Congress and the courts.

In order to protect the discretion and correctness, CRAs are required to comply with "reasonable procedures" along with precision, and importance of credit information. The FCRA inaugurates an outline of Fair Information Practices for personal evidence that contain privileges of facts superiority or right to review and update, data safekeeping, utilize boundaries, requirements for data demolition, bill, user input consensus, and liability. Also CRAs can correspondingly be referred as "credit bureaus" or "consumer reporting agencies. Being the first federal law to regulate the use of private business and the use of personal information, it was passed in response to the expanding industry in credit reporting.

Retail Credit Co was one of the first major credit reporting agencies that began in 1899. Retail Credit Co has evolved and purchased many less fortunate companies to insurers and employers as selling reports. Substantial polemic delimited the CRAs because of their reports being used to refute services and chances, not allowing individuals the right to access information located in their file, by the 1960s. Investigators have filed fictitious adverse information while others disregarded to include complete information. They were including data regarding marital status, cleanliness, sexual orientation, and drinking habits.

The advances in information technology that resulted in new ethical issues necessitating the creation because of outdated information that was being maintained by the CRAs caused public exposure which in turn lead to Congressional examination and federal regulation. The passage of FCRA in 1970 was a result of many years of legislative leadership by Representative Leonor Sullivan and Senator William Proxmire. Over the next ten years, Senator Proxmire pledged to expand the FCRA’s protections.


Retrieved from
Retrieved from
Retrieved from…...

Similar Documents

Free Essay

Fair and Accurate Credit Transactions Act of 2003

...Fair and Accurate Credit Transactions Act of 2003 The Fair and Accurate Credit Transactions Act also referred to as FACT seeks to amend many areas the Fair Credit Reporting Act fails to address and provide solutions to these issues. The Fair and Accurate Credit Transactions Act of 2003 was passed by congress in November of 2003 and later signed into law by president Bush December 4, 2003. Fact was developed in response to the idea that credit was being issued unfairly and inconsistently. The Act is designed to remove discrepancies and improve the accuracy of the national credit reporting system. The act also addresses identity theft issues and outlines assistance to identity theft victims. It contains provisions enhancing consumer rights in situations involving alleged identity theft, credit scoring, and claims of inaccurate information. It requires use of consumer reports to provide information to consumers who are offered credit on terms that are not on par with the offers the creditor makes to the largest portion of its customers. Companies that share consumer information with partner companies must provide consumers notice and an opt-out for sharing of such information if the information will be used to try to solicit consumers. I believe this legislation to be of most importance to banking and credit consumers. I believe this legislation provides the framework to ensure a more efficient and fair credit system. FACT helps to establish procedures that ensure no one is......

Words: 299 - Pages: 2

Free Essay

Information Technology Act Paper

...Information Technology Act Paper Dannie Roettger BIS220 February 14, 2013 Paul Kirchner Information Technology Act Paper In the ever changing fast paced world of information technology where information is bought, sold and traded for financial gain. Our governments have had to invent laws to ensure that our personal information is safe and not being used improperly. Two of the laws or acts we will explore in this paper are the Telephone Consumer Protection Act and the Fair Credit Reporting Act of 1970. We will look why these laws were enacted and the benefits that have come from these acts. The first act we are going to look at is the telephone consumer protection act. The Telephone Consumer Protection Act or the TCPA was passed on December 20, 1991 and went in to affect just one year later ("Telephone Consumer Protection Act (tcpa)", 2012). This act was put in place to stop the harassing telemarketers and regulate the selling of personal information. The TCPA was passed to regulate telemarketers and to add some ethical guidelines to their operating practices. Some of the benefits that came from the TCPA was telemarketers could only call residents between the hours of 8 AM and 9 PM. Another regulation that came from the telephone consumer protection act was the No Call List ("Telephone Consumer Protection Act (tcpa)", 2012). If a person requested to be on the no call list the telemarketer must place that consumer on the no call list and not call the consumer again....

Words: 638 - Pages: 3

Free Essay

Fair Trading Act

...inspector for the government department of Fair Trading practices in New Zealand. It has been reported to this department that your company practises the trade of “false advertising” or “false invoicing” specifically in this instance of selling advertisements for the Dannevirke Host Lions as reported in the “Dannevirke News“. It is this departments understanding that your company copies genuine advertisements placed by local businesses into local media. These copies are then reproduced on your letterheads and faxed to these local business. You make a follow up call stating that you had spoken to the business previously and that they had agreed to place the advertisement in your publication. Your company then requests that they sign and return the advertisement on the fax and return it by fax to yourselves. You then send an invoice for this advertisement. Your company uses the same order numbers received from business repetitively Your company claims to be producing a publication that represents the Dannevirke Host Lions. Your company also states that the Dannevirke Host Lions will benefit financially from the publication of the magazine. No such publication has been sanctioned by the Lions club nor have they seen any evidence of a publication being produced currently or in the past. This business practise that your company is currently involved in may be in breach of the Fair Trading Act 1986. Under Section 9 of act the “ No person shall, in trade,......

Words: 775 - Pages: 4

Free Essay

It Act

...IT Act Paper What were the advances in information technology that resulted in new ethical issues necessitating the creation of each act? Do Not Call Implementation Act, 2003 Before the 2003 Do Not Call Act existed so many telemarketers would call at all hours of the day and in turn resulted in so much unsolicited phone calls. People tried everything in their means to stop these calls but had no foundation to rely on. Due to the complaints of so many people to the Federal Communications Commission (FCC) created a Do Not Call Registry. With the registry one can choose online or by telephone at no cost to register their number to be placed on a Do Not Call List. All Telemarketers and sellers are required to search the registry at least once every 31 days and drop from their call lists the phone numbers of consumers who have registered. Also if you have a caller id all telemarketers are required to unblock their numbers when placing a call and you will then have the choice to answer or click. All information provided can be found on the website. Fair Credit Reporting Act, 1970 The Fair Credit Reporting Act, 1970 originally the law was primarily of interest to banks and consumer reporting agencies (CRA) and businesses which sent information to them. Today, this law applies to a wide variety of organizations that collect personal information from you directly, as well as from public records. In 2003 the law was amended by the Fair and Accurate Credit......

Words: 397 - Pages: 2

Premium Essay

Fair Tax Act

...The FairTax Act Many debates have been waged over the decades on what will be taxed, on who shall be taxed and how taxes are collected. Since the 16th Amendment was ratified in 1913, the debate has intensified, centering on how high to make the income tax rate. Most Americans were not concerned since the Amendment was sold to them as something that would only affect corporations and the rich. With ever increasing fervor these corporations created lobbyists to convince Congress to exempt them from some or all of the income tax. The big breakthrough in this was taxing the worker directly with payroll taxes during World War II. This method of collecting income tax was sold to Americans as temporary, but Congress has extended it indefinitely and the public has become used to it. The next few decades saw the debate revolve around creating tax breaks for individuals in an attempt to modify behavior or spending. This has resulted in over 67,000 pages of tax code and an entire industry devoted to tax compliance and evasion, with the unintended behavioral change of corporations and the rich parking their money outside of the United States in small island nations to avoid taxation. These offshore accounts are estimated to hold $10 trillion dollars, a number approximate to the national debt. The FairTax Act should be enacted because it eliminates all federal income taxes for individuals and corporations, eliminates all federal payroll withholding taxes, abolishes estate and...

Words: 1878 - Pages: 8

Premium Essay

Contract Labour Act, 1970 (India)

...from the industry, which was mere 7% in 1956-57. THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970 [5th September, 1970.] An Act to regulate the employment of contract labour in certain establishments and to provide for its abolition in certain circumstances and for matters connected therewith. Be it enacted by Parliament in the Twenty-first Year of the Republic of India as follows: - CHAPTER I PRELIMINARY 1. Short title, extent, commencement and application. - (1) This Act may be called the Contract Labour (Regulation and Abolition) Act, 1970. (2) It extends to the whole of India. (3) It shall come into force on such date as it received assent of the President on 5.9.1970; Published in Gazette of India on 7.9.1970 as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act. (4) It applies-- (a) To every establishment in which twenty or more workmen are employed or were employed on any day of the preceding twelve months as contract labour; (b) to every contractor who employees or who employed on any day of the preceding twelve months twenty or more workmen: Provided that the appropriate Government may, after giving not less than two months' notice of its intention so to do, by notification in the Official Gazette, apply the provisions of this Act to any establishment or contractor employing such number of workmen less than twenty as may......

Words: 7069 - Pages: 29

Premium Essay

The Fair Tax Act of 2013

...The Fair Tax Act of 2013 is an alternative tax plan introduced Senator Saxby Chambliss (R-Ga) to the Senate Finance Committee on January 23, 2013. Subsequently Senate bill S. 122 and House bill H.R.25 were written. The Congressional findings of the 113th Congress in regards to the Federal income tax, which prompted the introduction of this alternative tax plan, found that the present systems of federal taxation retards economic growth thus reducing the living standards of the United States citizens, impedes the International Competitiveness of Industry in the United States, lowers productivity, as well as a host of other negative findings attributed to our current Federal taxation scheme. Those that supported the introduction of this legislation have the belief that a consumption tax, which is the hallmark of the Fair Tax plan, would have a positive effect on savings and investment thus easing tax compliance resulting in an increase in economic growth and international competitiveness of American industries. Glen R. Hubbard wrote: “A shift from the current tax system to a broad-based consumption tax is best thought of as a two-step process”. His findings first conclude that most elements of consumption tax reform are consistent with moving to a pure income tax with uniform capital taxation. Once there, to get to a consumption tax the key element of reform would be the replacement of depreciation allowances for physical investment with expensing of capital assets. Both of......

Words: 2324 - Pages: 10

Free Essay

Fair Marketplace Act

...How the Marketplace Fairness Act Could Destroy Many Small Businesses The Marketplace Fairness Act (MFA) of 2013 is a proposed law that passed the United States Senate in May 6, 2003 and currently pending by the United States Congress. The legislation requires all remote sellers, a term that usually used to define online retailers who sell and ship goods to other state that the company has no physical presence in, to collect sales taxes and use taxes for every state and jurisdiction where they have customers if they have $1 million or more in annual retail transaction. When individual purchases goods outside of their domestic state, the out-of-state sellers have no obligation to serve as the tax collector but the consumers have the obligation to report the use tax, a tax that individual should pay if one does not pay the tax already to his domestic state. Yet, very few consumers follow the requirement. This legislation is designed to close the loophole that currently allows buyers to purchase out-of-state item and avoid having to pay sales tax. Since every state and location have different tax requirement, the MFA intend to design tax software to help companies calculate their taxes and collect taxes for up to 46 states. One of the MFA’s main goals is to level the playing field between the local and online retailers by mandating the necessary taxes to be collect equally by every business. The MFA also attempts to protect the small businesses from the unfairness......

Words: 1641 - Pages: 7

Premium Essay

Fair Credit Reporting Act

...God, His Angel, and His Scriptures compiled in the Qur’an. His Prophets from which Muhammad is the last, in the Day of Judgment and wisdom and knowledge of God forever. 2. Those who trust in God and always enjoy unshakable trust in Him. 3. .Those who spend their time in God’s way, what he has given them in the form of wealth, life, health, Knowledge, experience, etc... 4. This who regularly make their daily prayers and as the weekly and annual celebration. 5. Those who pay their religious tax (Zakah or Alma) to the rightful beneficiaries (individuals or institutions), the minimum of which corresponds to 2.5% of annual net *income*, or the total value of share when be they business, after deducting all expenses and credits. 6. Those who command is doing good and justice, to a fight error and wrong by all legal means at it is a disposition. 7. Those who obey God and His Prophets Muhammad (PBUH), and fell intensity of the faith and strength when the Qur’an is recited, and are humble of heart when God’s name is mentioned. Increasing strength of faith. 8. Those who love God and His Prophet (PBH) over all things and sincerely love their neighbor, just for the love of God. 9. Those who love their neighbors near and far, show genuine kindness to guests, especially strangers. 10. Those who tell the truth and engage in good conversation or some other way abstaining. III. Describe the practices of Islam. In the practice of Islam......

Words: 1707 - Pages: 7

Premium Essay

Fair Tax Act

...Fair Tax Act Jill Payne ACCT 615 April 26, 2014 Dr. Dana Leland “In this world nothing can be said to be certain, except death and taxes.” –Benjamin Franklin One thing is for sure you can’t escape taxes. The United States (US) income tax system is complex and often hard to navigate. Much like the English language there seems to be as many exceptions to the rules as there are rules. Our current system applies a tax rate to yearly income, and allows for deductions and exemptions to reduce an individual or business’s taxable income. Many would also argue that our current system is very intrusive as it requires us to provide many details about our families and business activities. The tax formula for the individual starts with income from all sources however many forms of income are excluded and therefore are not subject to the federal income tax. This creates a loop hole that allows many people to avoid paying their taxes. Also only reported income is taxed so anyone that is paid “under the table” or through illegal activities are able to shield their income from being taxed. Is there another way? Enter the Fair Tax Act. The idea behind the Fair Tax Act is simple, instead of taxing income the US government would tax consumption. Currently many state and local governments do have a small consumption tax but not the federal government. The difference between our current system and the proposed Fair Tax Act is that money would be taxed when it is spent not...

Words: 861 - Pages: 4

Free Essay

Gs2745 U7 A1, Fico Credit Scores and the Fair Credit Reporting Act (Fcra)

...FICO Credit scores and the Fair Credit Reporting Act (FCRA) 1. The most widely used credit score is the FICO Score, the credit score system created by the Fair Isaac Corporation. 2. Lenders use the FICO Score to help them make billions of credit decisions every year. 3. Fair Isaac calculates the FICO Score based solely on information in consumer credit reports maintained at the credit reporting agencies. 4. The Fair Credit Reporting Act (FCRA) requires Equifax, Experian, and TransUnion (credit- reporting agencies) to provide you with a free copy of your credit report once per year. 5. FICO Credit scores have five factors Payment History, Outstanding Debt, Length of your Credit History, Recent Inquiries on Your Report, Types of Credit in Use. 6. How to improve your fico score Request a free copy of your credit report and check it for mistakes, such as incorrect late payments and balances. 7. Make sure that you pay your bills on time. 8. Consider setting up automated payments or payment reminders if you continue to have problems paying your bills on time. 9. Stop using your credit cards and start paying them off. 10. Don't close credit cards once they are paid off and don't apply for credit cards unnecessarily. 11. Refrain from using your credit cards again until they are paid off and you know how to use them. 12. Learn how to manage your finances in a positive way that increases your FICO Score and gets you into a more positive position. ...

Words: 260 - Pages: 2

Premium Essay

Credit Scores Are a Fair Measure to Help Lenders Estimate Potential Risk

...A good credit score can save consumers money with lower interest rates because lenders use it to determine credit risk. Lenders use different tools to determine risk; the most widely used tool is the FICO Credit Scoring system. Maintaining a satisfactory credit score is important because lenders consider this an important tool for determining credit risk. According to the Fair Credit Reporting Act, the definition of a credit score is “a numerical value or a categorization derived from a statisticaltool or modeling system used by a person who makes or arranges a loanto predict the likelihood of certain credit behaviors, including default (and the numerical value or the categorization derived from such analysis may also be referred to as a “risk predictor” or “risk score”); and does not include any mortgage score or rating of an automated underwriting system that considers one or more factors in addition to credit information, including the loan to value ratio, the amount of down payment, or the financial assets of a consumer; or any other elements of the underwriting process or underwriting decision” (FCRA §609(f) (2)). Although there are different types of credit scoring models, the most widely used is the FICO scoring system, created by Fair, Isaac, and Company. The factors that make up this score are as follows: payment history, new credit, amounts owed, length of credit history, and types of credit used. The length of time used for creating the score is the...

Words: 1021 - Pages: 5

Premium Essay

Fair Labor Standard Act

...Fair Labor Standard Act Jamesca Caton Saint Leo University Professor Richard Primo October 11, 2015 Abstract In this paper I will discuss the background and history of the Fair Labor Standards Act and discuss the record keeping of employees that are exempt and non-exempt under Fair Labor Standard Act. Also, I will discuss the compensation and overtime pay of employees under the Fair Labor Standard Act and the enforcement of and regulations of the Fair Labor Standards Act. Moreover, I will discuss some current issues with the Fair Labor Standards Act such as child labor laws as well. BACKGROUND AND HISTORY In 1938, the Fair Labor Standards Act was passed to help put protections in place for workers across America. The act was passed after the Great Depression, at a time when many employers took advantage of the horrible working conditions and impossible hours. This act was passed to regulate minimum wage, overtime pay, equal pay, record keeping and child labor standards in the United States and to guarantee a workers right to be paid fairly under the Fair Labor Standards Act. The Fair Labor Standards Act help establish the federal minimum wage for all employees and sets requirements for overtime for employees as well. The FLSA also defines the forty hour work week for employees and places restrictions on child labor. The Fair Labor Standards Act has been amended several times to expand the law to require employees both male and female to receive equal pay for...

Words: 2145 - Pages: 9

Premium Essay

Credit Card Act

...The Credit Card Act President Obama signed the Credit Card Accountability, Responsibility, and Disclosure Act, or the Credit Card Act, on May 22, 2009. The objective of the act is to make credit card policy fairer and more transparent for the consumer to better understand the implications of credit card use. There are a number of young consumers who may have accessed a credit card either in effort to start building their credit, or because their parents got them a credit card, in which case the user does not fully realize the details of owning a credit card, and the implications in long-term financial planning. On average, by the end of 2009 the typical American consumer had around $5,400 in credit card debt (Sidel 1). Any adult user without a background in financing or any tendency to track credit card vendor activities could be susceptible to a wide range of credit card abuses, at least, until the Credit Card Act intended to reduce these issues. New requirements include the following. In §101(a) advance notice prior to a rate increase or any other major changes is necessary. This is important because a lot of people will sign up for a new credit card with zero APR for the first year, then the interest rate spikes up to 22.5 percent. Without being aware of at what point this interest change will occur, a consumer may not plan their payments to the credit card accordingly as they initially desired upon opening the card. With a warning, the consumer can budget......

Words: 1605 - Pages: 7

Premium Essay

Fair Labor Standard Acts

...The areas that are not covered by the Fair Labor Standards Act are as follows; there are no stipulations for rest periods such as coffee or cigarette breaks, holidays, severance or sick pay, as well as any type of extra pay for weekends. There are also examples in which there may be a small company with a low sales volume, which can be exempt from the Act as well. There are cases in which the union may override hourly wage issues; for instance, when an employee works 40 hours in 3 days, under the act they would not receive extra pay if they maintained working additional hours. State laws may also replace federal laws, it all depends on which law benefits the employee most, and whichever that law does, will be the law that stands. There are also other governing bodies that protect employees such as the EEOC, (Equal Employment Opportunity Commission) “The U.S. Equal Employment Opportunity Commission (EEOC) is responsible for enforcing federal laws that make it illegal to discriminate against a job applicant or an employee because of the person's race, color, religion, sex (including pregnancy), national origin, age (40 or older), disability or genetic information. It is also illegal to discriminate against a person because the person complained about discrimination, filed a charge of discrimination, or participated in an employment discrimination investigation or lawsuit. Most employers with at least 15 employees are covered by EEOC laws (20 employees in age......

Words: 520 - Pages: 3

Tensei shitara Slime Datta Ken (2018) "Rimuru Tempest" is the new name of a slime in a fantasy world taken by a former 37-year-old human Satou Mikami after he is killed by a passing robber. Broken free from ordinary, stale past life, his fresh adventure... | Bodyguard | Discussion and Help