ARM Certification Practice Exam 2025 – Complete Prep Guide

The correct answer is the Fair Credit Reporting Act, commonly abbreviated as FCRA. This act was enacted in 1970 and serves a vital role in regulating how credit information is collected, accessed, and used. The primary purpose of the FCRA is to promote accuracy and fairness in the reporting of consumer credit information. It provides consumers with rights regarding their credit reports, such as the ability to know what’s in their reports, dispute inaccuracies, and limit access to their credit history.

The significance of the FCRA in property management relates to how managers must handle tenant applications, screening processes, and financial assessments. It ensures that managers comply with fair practices when obtaining and utilizing a tenant's credit report. Understanding the FCRA is essential for professionals in property management to ensure they protect consumer rights and adhere to legal requirements during the leasing process.