FCRA Consumer Rights & Dispute Resolution 2 — Questions and Answers
Question 1: Under the FCRA, what is the maximum timeframe a CRA has to reinvestigate a disputed item after receiving notice from a consumer?
- 30 days (Correct answer)
- 45 days
- 60 days
- 90 days
Correct answer: 30 days
CRAs must complete reinvestigation within 30 days of receiving the consumer's dispute, extendable to 45 days if the consumer submits additional information during that period.
Question 2: If a consumer provides relevant information during an ongoing reinvestigation, by how many additional days may the CRA extend the reinvestigation period?
- 5 days
- 10 days
- 15 days (Correct answer)
- 20 days
Correct answer: 15 days
If a consumer submits additional relevant information during the 30-day reinvestigation period, the CRA may extend the period by up to 15 days.
Question 3: Which of the following correctly describes what must happen after a CRA determines a disputed item is inaccurate or cannot be verified?
- The CRA must notify the furnisher but may keep the item for 30 more days
- The CRA must delete or modify the item and notify the consumer (Correct answer)
- The CRA must place a fraud alert on the file
- The CRA must suspend the consumer's credit report temporarily
Correct answer: The CRA must delete or modify the item and notify the consumer
When a CRA finds a disputed item is inaccurate or unverifiable, it must promptly delete or correct the item and notify the consumer of the results.
Question 4: A consumer submits a dispute that a CRA deems 'frivolous or irrelevant.' What must the CRA do within 5 business days?
- Escalate the dispute to the CFPB
- Notify the consumer that the dispute is frivolous and state the reasons (Correct answer)
- Forward the dispute to the furnisher anyway
- Place the consumer on a dispute watchlist
Correct answer: Notify the consumer that the dispute is frivolous and state the reasons
If a CRA determines a dispute is frivolous or irrelevant, it must notify the consumer within 5 business days, explaining the reasons for that determination.
Question 5: Under FCRA §611, after completing a reinvestigation that results in no change to a disputed item, what right does the consumer have?
- The right to sue the CRA immediately without further process
- The right to add a statement of dispute (up to 100 words) to their file (Correct answer)
- The right to have the item removed after a second dispute
- The right to request a federal audit of the CRA
Correct answer: The right to add a statement of dispute (up to 100 words) to their file
If a reinvestigation does not resolve the dispute, the consumer may add a brief statement (up to 100 words) to their file explaining the nature of the dispute.
Question 6: When a consumer requests a free credit report after taking adverse action, within what timeframe must the consumer make that request?
- 30 days after the adverse action notice
- 60 days after the adverse action notice (Correct answer)
- 45 days after the adverse action notice
- 90 days after the adverse action notice
Correct answer: 60 days after the adverse action notice
Consumers have 60 days from the date of an adverse action notice to request a free copy of the report that was used in the decision.
Question 7: A CRA must provide a consumer with their credit report upon request. Which group is entitled to receive two free disclosures per year from a nationwide specialty CRA?
- Consumers who have been victims of identity theft
- Consumers who are unemployed and seeking employment within 60 days
- All consumers regardless of circumstance (Correct answer)
- Consumers with a fraud alert on their file
Correct answer: All consumers regardless of circumstance
Under FCRA §612, consumers are entitled to one free file disclosure annually from nationwide CRAs, and nationwide specialty CRAs must provide up to two free disclosures per year to any consumer who requests them.
FCRA Consumer Rights & Dispute Resolution 2
Under the FCRA, what is the maximum timeframe a CRA has to reinvestigate a disputed item after receiving notice from a consumer?