A more thorough explanation:

The Fair Credit Reporting Act (FCRA) is a law that was passed in 1970 to regulate consumer reporting agencies and credit reports. It applies to information that is collected, used, or expected to be used to evaluate eligibility for credit, insurance, employment, government licenses or benefits, child support, criminal history, and other business transactions involving a consumer in their role as a consumer.

For example, if you apply for a loan or a job, the lender or employer may request a consumer report from a credit reporting agency to evaluate your creditworthiness or suitability for the job. The FCRA requires that these entities obtain your consent before obtaining your consumer report.

The FCRA also requires credit reporting agencies to provide you with a free credit report once every year and to alert you if your information was used to deny eligibility for credit. The agencies must keep your report up to date and delete information after set periods of time.

Overall, the FCRA is designed to protect consumers from inaccurate or unfair credit reporting practices and to give them control over their personal information.