What does the Fair Credit Reporting Act require applicants to be informed about?

The Fair Credit Reporting Act (FCRA) mandates that consumers be informed when a consumer report is potentially going to be requested in relation to their credit history or other personal information. This law emphasizes transparency and consumer rights, ensuring that individuals are aware that their credit report may be reviewed as part of the application process for credit or insurance. This requirement allows applicants to be cognizant of the potential impact of their personal financial information on applications, helping them understand the process and their rights.

The other choices, while they touch upon important aspects of consumer rights and insurance practices, do not accurately reflect the specific requirements set forth by the Fair Credit Reporting Act. The FCRA does not specifically address medical history disclosures, pre-existing conditions, or the direct impact of credit scores on coverage decisions in the same manner as it does with the requirement for informing applicants about consumer reports. Thus, the focus of the FCRA is on the right to know about the use of consumer reports during the application process.