Which act establishes procedures for consumer-reporting agencies to maintain confidentiality and accuracy?

The Fair Credit Reporting Act (FCRA) is the legislation that specifically addresses consumer reporting agencies and sets forth the guidelines for maintaining both the confidentiality and accuracy of consumer information. This act was enacted to promote fairness, accuracy, and privacy of information contained in the files of consumer reporting agencies. It aims to help consumers understand their rights regarding their credit reports and to ensure that individuals are aware of the data being reported about them.

The FCRA requires consumer reporting agencies to follow strict protocols for verifying the accuracy of the information they collect and to take necessary steps to correct errors when they occur. Additionally, this law establishes consumers' rights to access their credit reports and dispute any inaccuracies, thereby enhancing the protective measures around personal financial data.

In comparison to the other options, while the Consumer Protection Act focuses broadly on safeguarding consumer rights across various sectors, it does not specifically address the operations of consumer reporting agencies. The Insurance Reform Act generally concerns the regulation of the insurance industry and does not pertain directly to consumer data privacy in reporting agencies. The Financial Privacy Act, although it addresses aspects of consumer financial information, does not provide the comprehensive framework associated with the accuracy and confidentiality of consumer reports held by reporting agencies.