Which act outlines consumer privacy rights regarding credit reports?

The Fair Credit Reporting Act (FCRA) is the correct choice because it specifically establishes guidelines for how consumer credit information can be collected and distributed. This law was enacted to promote the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies. It grants consumers various rights, including the right to access their credit reports, the ability to dispute inaccurate information, and the right to know if they have been denied credit based on information in their credit report.

These consumer privacy rights are vital because they empower individuals to take control of their credit histories and ensure that their financial information is handled correctly and fairly. As a result, the FCRA plays a crucial role in protecting consumers in transactions related to credit, thereby supporting their ability to make informed financial decisions.