Fair Credit Reporting Act (AI/algorithmic consumer scoring and screening)
United States · 15 U.S.C. § 1681 et seq.
When a company uses a consumer report or score — including AI-generated risk scores from background-check and tenant/employment screening firms — to deny you credit, insurance, housing, or a job, it must tell you and identify the agency that supplied the report. You have the right to a free copy of your file and to dispute inaccurate information, no matter how algorithmic the scoring was.
Technical detail
15 U.S.C. § 1681 et seq. imposes accuracy, permissible-purpose, disclosure, dispute, and adverse-action-notice obligations on consumer reporting agencies and users of consumer reports, applying technology-neutrally to algorithmic and AI-driven scoring products.
Who is protected: Consumers who are subjects of consumer reports and algorithmic scores used for eligibility decisions
Who must comply: Consumer reporting agencies (including algorithmic screening/scoring vendors), furnishers, and users of consumer reports
Key facts
| Jurisdiction | United States |
|---|---|
| Level | Federal |
| Status | In effect |
| Protection strength | Stronger protection |
| Effective date | 1971-04-25 |
| Enacted | 1970-10-26 |
| Citation | 15 U.S.C. § 1681 et seq. |
| Enforced by | Consumer Financial Protection Bureau and Federal Trade Commission; state attorneys general |
| Private right of action | Yes — individuals can sue |
| Penalties | Actual damages; statutory damages of $100–$1,000 plus punitive damages for willful violations; civil penalties in agency actions |
| Topics | housing and credit decisions · AI hiring and employment · automated decision-making · consumer protection · consumer data privacy · AI disclosure and transparency |
| Last verified | 2026-06-10 |
| Official source | Fair Credit Reporting Act | Federal Trade Commission ↗ |
More AI rules in United States
- FTC Act Section 5 (unfair/deceptive AI) · In effect
- TAKE IT DOWN Act · In effect
- ECOA / Regulation B (AI credit discrimination) · In effect
- Title VII / ADA (AI hiring) · In effect
- COPPA + 2025 Rule (childrens data) · In effect
- TCPA (AI voice calls) · In effect
Related housing and credit decisions rules elsewhere
- Colorado AI Act (repealed) · Repealed / replaced
- SB 26-189 (Colorado ADMT Law) · Enacted (not yet in effect)
- New York S7882 (felony to use algorithms to coordinate residential rents) · In effect
- DC Algorithm Bill (not enacted) · Expired
- MA AG · In effect
- NJ AG Platkin / DCR · In effect
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