Which federal law requires lenders to provide borrowers with information about their credit rights?

The Fair Credit Reporting Act is the federal law that requires lenders to inform borrowers about their credit rights. This law was enacted to ensure consumers are aware of their rights regarding the use of their credit information and to promote accurate and fair credit reporting practices. Under this act, lenders must provide disclosures that inform borrowers of their rights to access their credit reports, dispute inaccuracies, and understand how their credit information can affect lending decisions.

By ensuring that borrowers receive information about their credit rights, the Fair Credit Reporting Act helps to empower consumers to take control of their creditworthiness and safeguard against identity theft and misinformation. This law plays a crucial role in promoting transparency in the lending process and ensuring that borrowers make informed decisions.