Section 602 of the Fair Credit Reporting Act (FCRA).
The Fair Credit Reporting Act - Section 602
602. Congressional findings and statement of purpose [15 U.S.C. 1681]
(a) Accuracy and fairness of credit reporting. The Congress makes the following
findings:
(1) The 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.
(2) An elaborate mechanism has been developed for investigating and evaluating
the credit worthiness, credit standing, credit capacity, character, and general
reputation of consumers.
(3) Consumer reporting agencies have assumed a vital role in assembling and
evaluating consumer credit and other information on consumers.
(4) 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.
(b) Reasonable procedures. It is the purpose of this title to require that
consumer reporting agencies 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, with regard to the
confidentiality, accuracy, relevancy, and proper utilization of such information
in accordance with the requirements of this title.
