CIPP Financial Privacy (GLBA, FCRA, and FACTA) 2

Question 1

The Fair Credit Reporting Act (FCRA) primarily regulates which entities?

Accepted Answer

Consumer reporting agencies and users of consumer reports

Answer

Banks and mortgage lenders only

Answer

The IRS and tax collection agencies

Answer

Financial institutions subject to GLBA

Question 2

Under FCRA, how long may a Chapter 7 bankruptcy remain on a consumer's credit report?

Accepted Answer

10 years from the filing date

Answer

5 years from the discharge date

Answer

7 years from the filing date

Answer

15 years from the filing date

Question 3

Which of the following constitutes a 'permissible purpose' for obtaining a consumer report under FCRA?

Accepted Answer

A credit transaction initiated by the consumer

Answer

General marketing campaigns to existing customers

Answer

Sending unsolicited promotional materials

Answer

Data analytics by third-party data brokers

Question 4

When an employer intends to take an adverse action based on a consumer report, FCRA requires the employer to:

Accepted Answer

Provide a pre-adverse action notice followed by an adverse action notice

Answer

Immediately delete the consumer report from its systems

Answer

Notify the consumer reporting agency within 30 days

Answer

Obtain written consumer consent before using the report

Question 5

Under FCRA, how long does a consumer reporting agency generally have to investigate a consumer dispute about inaccurate information?

Accepted Answer

30 days

Answer

15 business days

Answer

45 days under all circumstances

Answer

60 days

Question 6

Which of the following is NOT a permissible purpose for obtaining a consumer report under FCRA?

Accepted Answer

Satisfying personal curiosity about a neighbor

Answer

Pre-employment background screening

Answer

Insurance underwriting for a new policy

Answer

Reviewing an existing account relationship

Question 7

The FCRA 'Furnisher Rule' primarily requires entities that report information to consumer reporting agencies to:

Accepted Answer

Maintain reasonable policies to ensure accuracy and integrity of reported information

Answer

Pay a fee for each consumer record submitted to a CRA

Answer

Obtain consumer consent before submitting any information

Answer

Delete all submitted consumer records after 7 years