Certified Apartment Portfolio Supervisor (CAPS) Practice Exam - Module 1

Which Act ensures the lawful use of consumer credit reports without discrimination?

1. Fair Housing Act

2. Fair Credit Reporting Act

3. Equal Employment Opportunity Act

4. Community Reinvestment Act

The correct answer is: Fair Credit Reporting Act

The Fair Credit Reporting Act (FCRA) is designed to ensure the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. This Act specifically governs how consumer credit information is collected, disseminated, and used. It establishes the rights of consumers to access their credit reports and provides guidelines for who can access this information and under what circumstances. By emphasizing lawful use and requiring that credit reporting agencies maintain accurate information, the FCRA helps prevent discrimination based on credit information. This is critical for fair lending and employment practices, as it helps ensure individuals are not unfairly judged or discriminated against due to their credit history. While other acts address issues of discrimination in different contexts, the FCRA specifically targets the management and usage of consumer credit reports, making it the appropriate answer in this context.