Not sure what certain terms mean? We strive to make the laws and terminology as easy to understand as possible.
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Consumer Reporting Agencies (CRAs): Businesses that collect information about consumers to be used by banks, car dealerships, landlords, etc., to determine things like the issuance of credit, car loans, housing, and employment. The three main CRAs are Experian, Equifax, and TransUnion.
Credit Score. A number which represents the creditworthiness of an individual. It is based on the credit history, and aims to identify and alleviate the risk of loaning additional funding or services.
Creditor. A financial term referring to someone who is owed money.
Debtor. A financial term referring to someone who owes money.
Fair Credit Reporting Act (FCRA): A federal law that governs the collection, distribution and use of consumer information such as credit history.
Fair Debt Collections Practices Act (FDCPA): A federal law which defines how debt collectors may conduct business, identifies consumers’ rights in relation to debt collectors, and mandates penalties for violations of the Act.
FICO: A public company that provides credit history and related data to financial services companies, to assist in making credit-related decisions (i.e., loan approval, renting or financing).
Rosenthal Fair Debt Collection Practices Act: A California state law which defines how debt collectors may conduct business, identifies consumers’ rights in relation to debt collectors, and mandates penalties for violations of the Act.