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Fair
Credit Reporting Act. A
federal law that allows a consumer to review (and correct, if
necessary) information used by the credit agencies.
For
instance, John wishes to purchase land from Bob, assuming the
loan as Bob has originally qualified. Bob, before
agreeing to the terms, reviews John's credit history and finds
that he has a poor credit rating. He, in turn, chooses
not to risk the sale. John, however, according to the
fair credit reporting act, is allowed to demand disclosure of
Bob's source of information. John can then, take steps
to correct or remove any misinformation on the report.
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