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

FCRA regulates consumer reporting agencies (CRAs) that compile consumer information and the entities that use consumer reports, establishing rights for consumers and duties for these parties.

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

Chapter 7 bankruptcy is the longest-retained adverse item under FCRA, remaining on a consumer credit report for up to 10 years from the date of filing.

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

FCRA limits access to consumer reports to specific permissible purposes, including credit transactions initiated by the consumer, employment screening, and insurance underwriting.

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

FCRA mandates a two-step process: a pre-adverse action notice with a copy of the report before the decision, and then a formal adverse action notice if the employer proceeds.

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

FCRA requires CRAs to complete dispute investigations within 30 days of receiving the dispute, extendable to 45 days when the consumer provides additional information during the investigation.

Certified Information Privacy Professional Practice Test

Certified Information Privacy Professional Practice Test

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