Question

Carlos approaches a bank for home loan. He is denied the loan when the verification of his credit history through his credit report reveals he has defaulted in the payment of a car loan. Carlos realizes that the information provided by the credit bureau is erroneous. Which law allows for action to be taken in case of errors in his credit report?

Answer 1

The law that allows for action to be taken in case of errors on credit reports is The Fair Credit Reporting Act. (Answer)

The Fair Credit Reporting Act or FCRA as it is also known rules the compilation of credit information as well as the access to those credit reports. The FCRA is the initial legislation that controls all activities that refer to the reporting of credit information for clients - consumers.

It was first created to guarantee security, privacy, and accuracy of the personal information included in the files of the credit reporting agencies.

Answer 2

The law that allows for action to be taken in case of errors in his credit report is the Equal Credit Opportunity Act.