CRAs and Consumer Reports Defined
A consumer reporting agency (CRA) compiles or evaluates personal information to furnish consumer reports to third parties for a fee. The FCRA's protections only attach when a CRA actually furnishes a report, a point that defeated FCRA claims arising from the 2017 Equifax breach.
How this supports CIPP/US study
Use this lesson to separate sectoral scope, data type and regulated entity before testing an exception. Continue with the CIPP/US practice exam.
A Consumer reporting agency (CRA) is any person or entity that compiles or evaluates personal information to furnish to third parties for a fee. The three best-known are Experian, Equifax and TransUnion, but thousands of smaller CRAs compile records such as criminal or driving histories for purposes like pre-employment screening.
A court ruled that the Equifax breach of nearly 150 million consumers' data was not a FCRA violation because Equifax had not "furnished" the stolen data to the hackers. The act's protections hinge on a CRA furnishing a report.
- A consumer report concerns creditworthiness, credit standing/capacity, character, reputation, personal characteristics or mode of living.
- It must be used in whole or part to establish eligibility for credit, insurance, employment or another business purpose.
Key terms - quick answers
What is “Consumer reporting agency (CRA)”?
What is “Consumer report”?
Sources and study method
This independent lesson uses active recall, spaced retrieval and scenario practice. Read the full study method.