Future Business Leaders of America (FBLA) Business Law Practice Exam

What right does the Fair Credit Reporting Act grant to individuals regarding their credit reports?

1. Right to dispute credit scores

2. Right to be informed of credit content

3. Right to opt-out of credit checks

4. Right to receive free credit reports

The correct answer is: Right to be informed of credit content

The Fair Credit Reporting Act (FCRA) primarily aims to ensure the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. One of the key rights it grants to individuals is the right to be informed about the content of their credit reports. This means that consumers have the ability to request their credit report and be aware of what information is being reported about them. This transparency is essential for individuals to ensure that the data is accurate and to understand how their credit history impacts their creditworthiness. Having access to their credit report allows individuals to identify any inaccuracies or fraudulent activities that could adversely affect their credit score. It also empowers consumers to take corrective action if necessary, such as disputing incorrect information. While there are other rights associated with credit reporting, such as receiving free credit reports annually from each of the three major credit reporting agencies and disputing inaccurate information, the specific emphasis on the right to be informed underscores the FCRA's intention to promote consumer awareness and protection in their financial matters.