Certified Apartment Portfolio Supervisor (CAPS) Practice Exam - Module 1

The Fair Credit Reporting Act (FCRA) is the correct choice because it establishes guidelines for the collection and use of consumer credit information, including ensuring that consumers are treated fairly and that their privacy is respected. One of the critical aspects of the FCRA is its focus on promoting accuracy and preventing discrimination in the use of consumer reports, which includes credit reports. This protection is designed to ensure that individuals are not unfairly treated based on their credit history, thereby preventing discrimination in lending and rental practices.

Understanding the role of the FCRA is essential in the context of managing residential properties, as property managers often rely on credit reports to evaluate potential tenants. The emphasis on certification and the permissible purposes for using credit reports helps ensure that such practices comply with legal standards, which ultimately supports fair housing practices.