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15 U.S.C. § 1681 – Congressional Findings and Statement of Purpose for the Fair Credit Reporting Act: Statutory Language for the Defense Lawyer of Class Action Lawsuits Under the FCRA

As a service to class action defense attorneys, we provide here the text of the relevant statutory provisions of the FCRA. We have endeavored to make this accurate as of January 1, 2006. It includes those amendments to the FCRA contained in the Fair and Accurate Credit Transactions Act of 2003 (FACT), Public Law 108-159, as well as those in Section 506 of the Gramm-Leach-Bliley Act. Public Law 106-102.

In 1970, Congress enacted the FCRA (Fair Credit Reporting Act, 15 U.S.C. §§ 1681 et seq. ) 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,” 15 U.S.C. § 1681(b).

We begin with the text of 15 U.S.C. § 1681:

§ 1681. Congressional findings and statement of purpose

(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.