FCRA Compliance Management & Risk Mitigation 2

Question 1

Under FCRA, how long must a CRA retain documentation of its reasonable procedures for assuring maximum possible accuracy?

Accepted Answer

No retention period is specified, but records must be available upon regulatory request

Answer

FCRA does not specify a precise retention period for compliance documentation, but regulators expect records to be producible on demand.

Question 2

A furnisher discovers it reported a consumer's Chapter 7 bankruptcy discharge date incorrectly to all three major CRAs. Under an effective compliance management system, what is the FIRST corrective step?

Accepted Answer

Send corrections to all affected CRAs promptly and document the root cause

Answer

Furnishers must correct inaccurate information sent to CRAs promptly and investigate the root cause to prevent recurrence.

Question 3

Which risk mitigation control is MOST effective for preventing FCRA violations arising from employee use of consumer reports for impermissible purposes?

Accepted Answer

Role-based access controls that restrict report retrieval to permissible-purpose job functions

Answer

Technical access controls prevent impermissible access at the system level, reducing reliance on human compliance alone.

Question 4

A compliance officer is designing a dispute-handling workflow. Which metric BEST signals whether the process meets FCRA's 30-day investigation requirement?

Accepted Answer

Percentage of disputes resolved within 25 business days to allow buffer time

Answer

Tracking resolution within 25 days (5 days before the statutory deadline) provides an operational buffer and early warning of capacity problems.

Question 5

Under FCRA Section 609, a consumer requests all information in their file from a CRA. Which item is the CRA NOT required to disclose?

Accepted Answer

The proprietary scoring algorithm weights used to generate a credit score

Answer

CRAs must disclose file contents and inquiry sources but are not required to reveal the proprietary algorithms underlying credit scores.

(FCRA) Advanced Fair Credit Reporting Act Certification Practice Test

(FCRA) Advanced Fair Credit Reporting Act Certification Practice Test

FCRA Compliance Management & Risk Mitigation 2