CIPP Financial Privacy (GLBA, FCRA, and FACTA) 3

Question 1

The Fair and Accurate Credit Transactions Act (FACTA) most significantly amended FCRA by establishing:

Accepted Answer

The right to one free credit report per year from each major consumer reporting agency

Answer

Mandatory credit freezes for all consumers annually

Answer

Mandatory credit counseling programs for all borrowers

Answer

A requirement for banks to share credit information with federal agencies

Question 2

FACTA's 'Red Flags Rule' requires covered entities to:

Accepted Answer

Develop and implement written programs to detect and respond to identity theft red flags

Answer

Report all suspected identity theft incidents to the FBI

Answer

Automatically freeze consumer accounts when fraud is suspected

Answer

Require consumers to report identity theft within 30 days to receive protection

Question 3

When a consumer reports identity theft under FACTA, what right does the consumer have regarding their credit report?

Accepted Answer

Place a fraud alert and block fraudulent information resulting from the identity theft

Answer

Receive a $1,000 statutory payment from the responsible creditor

Answer

Receive free credit monitoring services from all three major CRAs for life

Answer

Have all existing credit card debts automatically discharged

Question 4

FACTA's truncation requirement mandates that electronically printed receipts:

Accepted Answer

Display only the last 4 or 5 digits of the payment card number and omit the expiration date

Answer

Include the full account number for consumer verification purposes

Answer

Show only the expiration date but not the card number

Answer

Contain only the consumer's name and total transaction amount

Question 5

A key distinction between GLBA and stronger privacy laws is that GLBA generally requires only an 'opt-out' mechanism rather than 'opt-in' consent, meaning:

Accepted Answer

Consumers must actively choose to prevent sharing rather than actively agreeing to permit it

Answer

GLBA requires affirmative opt-in consent for all third-party data sharing

Answer

All sharing under GLBA is prohibited without prior consumer consent

Answer

GLBA provides no consumer choice mechanism whatsoever

Question 6

Which federal agency has broad enforcement authority over FCRA compliance for most non-bank companies?

Accepted Answer

Federal Trade Commission (FTC)

Answer

Office of the Comptroller of the Currency (OCC)

Answer

Securities and Exchange Commission (SEC)

Answer

Department of Justice (DOJ)

Question 7

Under FCRA, a 'consumer reporting agency' is defined as any entity that:

Accepted Answer

Regularly assembles or evaluates consumer credit information for furnishing consumer reports to third parties

Answer

Extends credit or lends money directly to consumers

Answer

Processes payment card transactions on behalf of merchants

Answer

Issues credit scores directly to individual consumers upon request