FCRA FCRA Identity Theft & Fraud Prevention 3 — Questions and Answers
Question 1: FACTA (the Fair and Accurate Credit Transactions Act of 2003) added which major identity theft provision to the FCRA?
- The right to place fraud alerts, block fraudulent information, and receive free annual credit reports (Correct answer)
- The right to dispute negative information directly with creditors
- The elimination of CRA liability for identity theft claims
- Mandatory arbitration for all identity theft disputes
Correct 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.
Question 2: Under FCRA §609(e), within how many days must a business provide an identity theft victim with transaction records of the fraudulent account?
- 30 days (Correct answer)
- 10 days
- 60 days
- 15 business days
Correct 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.
Question 3: 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?
- 5 business days (Correct answer)
- 3 business days
- 10 business days
- 30 calendar days
Correct 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.
Question 4: Which FCRA provision prohibits debt collectors and creditors from selling or transferring a debt that the consumer has reported as resulting from identity theft?
- §615(f) (Correct answer)
- §607(c)
- §623(a)(7)
- §605B(d)
Correct 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.
Question 5: 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?
- Once every 12 months (Correct answer)
- Once every 6 months
- Unlimited times per year
- Once every 24 months
Correct answer: Once every 12 months
FCRA §612(a) entitles consumers to one free disclosure from each nationwide specialty CRA every 12 months upon request.
Question 6: 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?
- Take reasonable steps to verify the consumer's identity and, if able to form a reasonable belief, furnish the confirmed address to the CRA (Correct answer)
- Automatically deny the credit application pending further review
- Report the discrepancy to local law enforcement within 24 hours
- Place an automatic fraud alert on the consumer's file
Correct 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.
FCRA FCRA Identity Theft & Fraud Prevention 3
FACTA (the Fair and Accurate Credit Transactions Act of 2003) added which major identity theft provision to the FCRA?