The Fair Credit Reporting Act regulates the use of information on a consumer's personal and financial condition. The most typical transaction which this Act would cover would be where a person applies for a personal loan or other consumer credit. Consumer credit is credit for personal, family, or household use, and not for business or commercial transactions. Also, this Act can apply when a person applies for a job or even a policy of insurance when certain investigations are made of the applicant.
The purpose of the Act is to insure that consumer information obtained and used is done in such a way as to insure its confidentiality, accuracy, relevancy and proper utilization. Under the Act, consumer reports are communications in any form by which furnishes informa�tion on consumers to potential creditors, insurers or employers.