What it Does

• The 2006, U.S Census Bureau reported 173 million credit card users.crowd image by alma_sacra from Fotolia.com
  
  The 1970 Fair Credit Reporting Act consists of legislation that regulates the "collection, dissemination and use of consumer credit information." In short, it is the primary means of consumer protection against fraudulent credit reporting practices. Given the amount of people who use credit cards and the ways in which private consumer information can be misused, the FCRA represents an important piece of legislation in the history of consumer credit protection laws.
  
  

Consumers

• Forty percent of card holders carry a balance less than $1,000.40 image by rosi from Fotolia.com
  
  Consumers are protected by the 1970 Fair Credit Reporting Act in several ways. One of the most important ways in which consumers are protected is by the access they have to their credit scores. Each year consumers can request a copy of their credit score, from each of the three major agencies. Likewise, consumers must be notified of changes to their credit reports, such as when negative information reappears after having been removed. Credit agencies must also remove past credit items in a reasonable amount of time.
  
  

Agencies

• Credit reports should be checked regularly to ensure accuracy.post it credit image by s??b_compiegne from Fotolia.com
  
  Credit reporting agencies must follow a specific set of conditions when using or disclosing consumer credit information. Under the1970 Federal Fair Credit Reporting Act, agencies can only disclose consumer credit information to a third party when permission has been obtained from the consumer, or when the agency believes that the party requesting the information is doing so for valid and legal reasons. These reasons include a credit evaluation, employment, an insurance evaluation or any other "legitimate business need," requiring a consumer credit report.
  
  

Amendments

• Since the enactment of the 1970 Fair Credit Reporting Act, there have been several changes made to this piece of legislation. The most significant change occurred in 2003 with the passage of several more-stringent requirements that favored the improvement of consumer rights. The changes that were passed called for an increase in reporting accuracy, restrictions on the dissemination of consumer information to third parties and preventative anti-identity theft practices. In addition, all consumers are now entitled to one one free credit report annually from each of the three reporting agencies.