Credit Rating Agency

A company that provides investors with assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. A high rating indicates low risk and may therefore encourage investors to buy a security. Additionally, banks may only invest in securities with a high rating from two or more credit rating agencies. The SEC recognizes 10 firms as credit rating agencies; Fitch, S&P, and Moody's are the three most prominent. However, the methods of credit ratings agencies have been subject to criticism. For example, most agencies gave high-risk mortgage-backed securities top ratings until they defaulted at the collapse of the housing bubble.

credit reporting agency (CRA)

An organization that maintains credit history information and sells reports and scores to authorized credit grantors. Regulated by the Federal Trade Commission under the requirements of the Fair Credit Reporting Act.

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References in periodicals archive

Special rules apply where the employer seeks medical information from a credit reporting agency. Employers may not retrieve medical information unless that information is relevant to the position to be filled and the employer obtains specific consent from the employee.

Fair Credit Reporting Act aims at keeping employers 'fair' as well

"With the very high levels of unsolicited junk email received by many, some of those messages will reach total strangers, leaving a window of opportunity for those intent on fraudulent activity," says Barry Stamp, joint managing director of Credit Reporting Agency.

Don't let e-mail catch you 'out'

This toolkit brings to any application a set of core credit reporting components that rival the technology found in any credit reporting agency.

LUXOR TECHNOLOGIES INTRODUCES CREDIT REPORTING SOFTWARE

MoneyForMail, a permission-based Internet marketing firm, is the first to provide this information, in partnership with Trans Union Corp., a major national credit reporting agency.

Consumer Credit Info Now Available

For example, Section 604 (f) of the FCRA prohibits any person from obtaining a credit report from a credit reporting agency unless the person has certified to the credit reporting agency (by a general or specific certification, as appropriate) the permissible purpose(s) for which the report is being obtained and has certified that the report will not be used for any other purpose.

A HIRING DILEMMA: Pre-Employment Background Checks

The FTC can assess fines up to $2,500 per violation for the furnisher or the credit reporting agency or a creditor in violation of the Fair Credit Reporting Act.

Changes to the Credit Reporting Act

So long as the information provided to a credit reporting agency or in connection with an industry group credit exchange is based upon credit for commercial purposes and not for "personal, family or household purposes", the statute's regulations do not apply.

Questions and answers: the privacy, accuracy and fairness of sensitive personal information under the Amended Fair Credit Reporting statute

US-based independent credit reporting agency Sarma has acquired US-based background checks and screening provider United Screening Services, Corp, the company said.

Deal snapshot: SARMA ACQUIRES HR BACKGROUND CHECK PROVIDER UNITED SCREENING SERVICES

Consumer credit reporting agency Equifax has said that it has launched a tool to fund SMEs.

Equifax launches SME funding tool

FactorTrust, Inc., a credit reporting agency, provides under-banked consumer risk management and identity verification services to alternative financial services industry.

FactorTrust partners with GoldPoint Systems