Which federal procedure ensures that consumer information is accurate, relevant, and properly used?

The Fair Credit Reporting Act (FCRA) is the federal procedure that ensures consumer information is accurate, relevant, and used appropriately. Established to promote the accuracy and integrity of information in the files of consumer reporting agencies, the FCRA provides consumers with the right to access their credit reports, dispute inaccurate information, and ensure that their personal information is being reported fairly.

By mandating that credit reporting agencies maintain accurate records and allowing consumers to dispute incorrect entries, the FCRA plays a crucial role in protecting consumer rights in the credit reporting system. This act also outlines permissible purposes for which consumer reports can be obtained, ensuring that the use of consumer data is directly related to legitimate needs, such as credit applications, employment, and insurance underwriting.

The other options address different aspects of consumer rights and protections: the Consumer Protection Act focuses broadly on safeguarding consumers from unfair trade practices; the Truth in Lending Act requires clear disclosure of terms and costs in lending; and the Privacy Act governs how federal agencies handle personal information. While these laws are important in their own right, it is the Fair Credit Reporting Act that specifically targets the accuracy and appropriate use of consumer information.