1.8.6 Fair Credit Reporting Act (1970)
Through the Fair Credit Reporting Act, the federal government determined that consumers have a fundamental right to be informed when their credit will be checked. If a credit report comes back in an unfavorable light, the consumer has the right to be informed of the name of the agency that made the report. The Act determined that noncompliance could result in actual as well as punitive damages.
Consumers must be notified (usually within three days) that a report has been requested. The insurer must also notify the applicant of their right to request disclosure of the nature and scope of the investigation. If the consumer requests such disclosure, the insurer must provide a summary within five days of the request. If the consumer disagrees with any information in the file, he can file a statement giving his opinion on the issue.
