What is the main function of the Fair Credit Reporting Act?

The Fair Credit Reporting Act (FCRA) is primarily designed to define how consumer report information can be collected, shared, and utilized by businesses. This legislation aims to ensure the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. The FCRA provides consumers with the right to know what is in their credit reports, the right to dispute inaccurate information, and the ability to limit access to their personal credit information. It thus plays a crucial role in protecting consumers from potential misuse of their financial data.

In contrast, the other options address distinct aspects of financial regulations but do not directly reflect the main purpose of the FCRA. Regulating transaction fees pertains to different financial legislation rather than consumer credit reporting. Establishing credit score guidelines typically involves oversight by specific agencies or institutions but is not the core function of the FCRA. Standardizing loan applications is more about ensuring uniformity in lending practices, which is outside the specific scope of how consumer reporting information is managed under the FCRA.