The credit industry is a big business in America. So big, in fact, that the U.S. Congress passed the Fair Credit Reporting Act (FCRA) which became effective April 25, 1971. Congress made four key findings which guided its purpose for creating the FCRA.

First, Congress found that the U.S. banking system is dependent upon fair and accurate credit reporting. Inaccurate credit reports directly impair the efficiency of the banking system, and unfair credit reporting methods undermine the public confidence which is essential to the continued functioning of the banking system.

The second Congressional finding determined that an elaborate mechanism has been developed for investigating and evaluating the credit worthiness, credit standing, credit capacity, character, and general reputation of consumers.

The third Congressional finding was that consumer reporting agencies (credit bureaus) have assumed a vital role in assembling and evaluating consumer credit and other information on consumers.

The final Congressional finding concluded that there is a need to insure that consumer reporting agencies exercise their grave responsibilities with fairness, impartiality, and a respect for the consumer’s right to privacy.

It is the purpose of the FCRA to require that credit bureaus adopt reasonable procedures for meeting the needs of commerce for consumer credit, personnel, insurance, and other information in a manner which is fair and equitable to the consumer. The credit bureau must also have regard to the confidentiality, accuracy, relevancy, and proper utilization of such information in accordance with the requirements of the FCRA. CMA Financial Corporation will act as your partner along the process of achieving a clean credit report that is FCRA-compliant.