What law was designed to protect the accuracy and privacy of credit reports?

The correct choice is the Fair Credit Reporting Act (FCRA). This law was enacted to ensure the accuracy, fairness, and privacy of consumer information held by credit reporting agencies. It establishes the rights of consumers regarding their credit reports and the obligations of the entities that furnish and report information about consumers to credit reporting agencies.

Under the FCRA, consumers have the right to access their credit reports and dispute any inaccuracies. It also regulates who can access credit reports and under what circumstances, thereby establishing critical privacy protections for consumers. The emphasis on both accuracy and privacy is central to the law's purpose, which aims to protect consumers from errors that could negatively impact their creditworthiness and financial stability.

In contrast, the other options focus on different aspects of financial regulation. The Fair and Accurate Credit Transactions Act enhances consumers' rights regarding identity theft and increased disclosure requirements but does not primarily focus on the accuracy and privacy of credit reports. The Consumer Financial Protection Act was established to oversee and regulate financial products and services to better protect consumers, encompassing a broader scope beyond just credit reporting. Lastly, the Debt Collection Improvement Act primarily addresses issues related to debt collection processes, rather than the handling and reporting of credit information.