What is the primary purpose of the Fair Credit Reporting Act?

The primary purpose of the Fair Credit Reporting Act (FCRA) is to protect consumers through the establishment of guidelines concerning credit reporting and the distribution of credit information. This federal law was enacted to promote accuracy, fairness, and privacy of information in the files of consumer reporting agencies. Under the FCRA, consumers are entitled to access their credit reports and dispute inaccurate information, ensuring that lenders and other entities have reliable data when making credit decisions. The Act also restricts who can access this information and mandates that consumers be informed if their credit report has been used against them in any significant way, such as in the denial of credit or insurance. This emphasis on consumer rights and data protection is why the selected answer is the most appropriate choice in relation to the purpose of the FCRA.