FCRA FCRA Identity Theft & Fraud Prevention 1 — Questions and Answers
Question 1: Under the FCRA, a consumer who believes they are a victim of identity theft may place an initial fraud alert on their credit file, which lasts for how long?
- 1 year (Correct answer)
- 90 days
- 7 years
- Indefinitely until removed
Correct answer: 1 year
An initial fraud alert under FCRA §605A lasts for 1 year and requires creditors to take reasonable steps to verify the consumer's identity before extending credit.
Question 2: An identity theft victim who provides an identity theft report to a CRA can request that fraudulent information be blocked from their credit report. Within how many days must the CRA block the information?
- 4 business days (Correct answer)
- 30 calendar days
- 7 business days
- 15 business days
Correct answer: 4 business days
FCRA §605B requires CRAs to block fraudulent information within 4 business days of receiving both a consumer identity theft report and proof of identity.
Question 3: A consumer files an identity theft report with the FTC. Under FCRA §605B, which entity can rescind (unblock) fraudulent information if it determines the block was based on misrepresentation?
- The CRA may rescind the block after notifying the consumer (Correct answer)
- Only a federal court can authorize rescission
- The original creditor can unilaterally remove the block
- The FTC must approve any rescission
Correct answer: The CRA may rescind the block after notifying the consumer
FCRA §605B(c) allows a CRA to rescind an identity theft block if it reasonably determines the block was requested in error or through misrepresentation, provided it notifies the consumer.
Question 4: Which FCRA provision requires creditors to provide identity theft victims with copies of application or transaction records related to the fraudulent activity?
- §609(e) (Correct answer)
- §605A(a)
- §611(a)
- §623(a)(6)
Correct answer: §609(e)
FCRA §609(e) requires businesses that furnished credit to an identity thief to provide the victim with transaction and application records within 30 days of a proper written request.
Question 5: Active duty military personnel can place an active duty alert on their credit file under the FCRA. How long does this alert last?
- 1 year (Correct answer)
- 90 days
- 2 years
- For the duration of deployment only
Correct answer: 1 year
FCRA §605A(b) provides active duty military personnel a 1-year active duty alert, requiring creditors to take reasonable identity verification steps before granting credit.
Question 6: A consumer who has been an identity theft victim may request an extended fraud alert lasting how long?
- 7 years (Correct answer)
- 1 year
- 3 years
- 5 years
Correct answer: 7 years
Under FCRA §605A(c), an extended fraud alert lasts 7 years and requires an identity theft report as documentation, providing longer-term protection than an initial alert.
FCRA FCRA Identity Theft & Fraud Prevention 1
Under the FCRA, a consumer who believes they are a victim of identity theft may place an initial fraud alert on their credit file, which lasts for how long?