FCRA Consumer Rights & Dispute Resolution 4 — Questions and Answers
Question 1: Under the FCRA, what is the statute of limitations for a consumer to bring a civil action for willful noncompliance?
- 1 year from the violation date or 2 years from discovery
- 2 years from the date the violation was discovered or 5 years from the violation (Correct answer)
- 5 years from the date of the violation
- 90 days from when the consumer receives their credit report
Correct answer: 2 years from the date the violation was discovered or 5 years from the violation
For willful FCRA violations, consumers must bring civil action within 2 years of discovering the violation or within 5 years of the violation itself, whichever is earlier.
Question 2: What remedies are available to a consumer who prevails in a civil action for willful FCRA noncompliance?
- Only actual damages
- Actual or statutory damages ($100–$1,000), plus punitive damages and attorney fees (Correct answer)
- Only injunctive relief
- Statutory damages of up to $10,000 per violation plus criminal referral
Correct answer: Actual or statutory damages ($100–$1,000), plus punitive damages and attorney fees
For willful violations, consumers may recover actual or statutory damages ($100–$1,000 per violation), punitive damages, and attorney's fees and costs.
Question 3: A consumer places an initial fraud alert on their credit file. How long does an initial fraud alert remain on the file?
- 30 days
- 90 days
- 1 year (Correct answer)
- 7 years
Correct answer: 1 year
An initial fraud alert (for consumers who believe they may be victims of fraud or identity theft) remains on the file for one year.
Question 4: A victim of identity theft places an extended fraud alert. What is the duration of an extended fraud alert, and what must CRAs do differently for these consumers?
- 1 year; CRAs must provide one free report
- 7 years; CRAs must exclude the consumer from prescreened offers for 5 years and provide two free reports (Correct answer)
- 5 years; CRAs must block all inquiries
- 3 years; CRAs must notify all furnishers immediately
Correct answer: 7 years; CRAs must exclude the consumer from prescreened offers for 5 years and provide two free reports
An extended fraud alert lasts 7 years, and CRAs must exclude the consumer from prescreened offers for 5 years and provide two free credit reports during the 12-month period following placement.
Question 5: Under the FCRA's identity theft provisions, which action must a CRA take within 4 business days of receiving a valid identity theft report?
- Delete all negative items from the consumer's file
- Block the reporting of information identified as resulting from identity theft (Correct answer)
- Contact all furnishers to halt new reporting
- Issue a credit freeze automatically
Correct answer: Block the reporting of information identified as resulting from identity theft
Upon receiving a valid identity theft report, a CRA must block reporting of information identified as resulting from identity theft within 4 business days.
Question 6: A CRA may decline to block or rescind a block of information if it reasonably determines the consumer obtained the information to avoid a legal obligation. What section of the FCRA governs blocks related to identity theft?
- §605A
- §605B (Correct answer)
- §609
- §623
Correct answer: §605B
FCRA §605B governs the blocking of information resulting from identity theft, including conditions under which CRAs may decline or rescind a block.
Question 7: When a CRA provides a consumer with a copy of their file, what other document must accompany it under FCRA §609?
- A copy of the consumer's FICO score
- A summary of rights under the FCRA (Correct answer)
- A list of all creditors who have inquired in the past year
- A credit counseling referral
Correct answer: A summary of rights under the FCRA
Under §609, any disclosure of a consumer's credit file must be accompanied by a written summary of the consumer's rights under the FCRA.
FCRA Consumer Rights & Dispute Resolution 4
Under the FCRA, what is the statute of limitations for a consumer to bring a civil action for willful noncompliance?