CIPP/US Study Guide
Chapter 9: Financial Privacy

CRAs and Consumer Reports Defined

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A consumer reporting agency (CRA) compiles or evaluates personal information to furnish consumer reports to third parties for a fee. The FCRA's protections only attach when a CRA actually furnishes a report, a point that defeated FCRA claims arising from the 2017 Equifax breach.

A Consumer reporting agency (CRA) is any person or entity that compiles or evaluates personal information to furnish Consumer report|consumer reports to third parties for a fee. The three best-known are Experian, Equifax and TransUnion, but thousands of smaller CRAs compile records such as criminal or driving histories for purposes like pre-employment screening.

2017 Equifax breach

A court ruled that the Equifax breach of nearly 150 million consumers' data was not a FCRA violation because Equifax had not "furnished" the stolen data to the hackers. The act's protections hinge on a CRA furnishing a report.

  • A consumer report concerns creditworthiness, credit standing/capacity, character, reputation, personal characteristics or mode of living.
  • It must be used in whole or part to establish eligibility for credit, insurance, employment or another business purpose.

Key terms - quick answers

What is “Consumer reporting agency (CRA)”?
Any person or entity that compiles or evaluates personal information to furnish consumer reports to third parties for a fee, such as Experian, Equifax and TransUnion.
What is “Consumer report”?
Any communication by a CRA bearing on a person's creditworthiness, character, reputation or mode of living, used in whole or part to establish eligibility for credit, insurance, employment or another permissible purpose.

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