FCRA Identity Theft & Fraud Prevention Flashcards

FACTA (the Fair and Accurate Credit Transactions Act of 2003) added which major identity theft provision to the FCRA?

Answer: The right to place fraud alerts, block fraudulent information, and receive free annual credit reports

FACTA added FCRA provisions for fraud alerts, identity theft information blocks, free annual credit reports, and victim assistance rights, forming the core of the FCRA's identity theft framework.

Under FCRA §609(e), within how many days must a business provide an identity theft victim with transaction records of the fraudulent account?

Answer: 30 days

FCRA §609(e) requires the business to provide identity theft victims with copies of transaction and application records within 30 days of a proper written request.

A CRA may decline an identity theft block under §605B if it reasonably determines the information was NOT obtained through identity theft. After declining, the CRA must notify the consumer within how many days?

Answer: 5 business days

Under FCRA §605B(c)(2), if a CRA declines to block or rescinds a block, it must notify the consumer within 5 business days of the decision.

Which FCRA provision prohibits debt collectors and creditors from selling or transferring a debt that the consumer has reported as resulting from identity theft?

Answer: §615(f)

FCRA §615(f) prohibits the sale, transfer, or placement for collection of a debt that any person knows (or should know) resulted from identity theft.

Under the FCRA, the nationwide specialty CRAs must provide a free file disclosure to consumers who request it. How often can consumers request this free disclosure?

Answer: Once every 12 months

FCRA §612(a) entitles consumers to one free disclosure from each nationwide specialty CRA every 12 months upon request.

A lender receives a notice of address discrepancy when pulling a consumer report. Under the FCRA's Address Discrepancy Rule, the lender must do which of the following?

Answer: Take reasonable steps to verify the consumer's identity and, if able to form a reasonable belief, furnish the confirmed address to the CRA

The Address Discrepancy Rule requires users of consumer reports to reasonably verify the consumer's identity and, when a confirmed address is obtained, furnish it back to the CRA.