FCRA Consumer Rights & Dispute Resolution 4

Question 1

Under the FCRA, what is the statute of limitations for a consumer to bring a civil action for willful noncompliance?

Accepted Answer

2 years from the date the violation was discovered or 5 years from the violation

Answer

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?

Accepted Answer

Actual or statutory damages ($100–$1,000), plus punitive damages and attorney fees

Answer

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?

Accepted Answer

1 year

Answer

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?

Accepted Answer

7 years; CRAs must exclude the consumer from prescreened offers for 5 years and provide two free reports

Answer

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?

Accepted Answer

Block the reporting of information identified as resulting from identity theft

Answer

Upon receiving a valid identity theft report, a CRA must block reporting of information identified as resulting from identity theft within 4 business days.

(FCRA) Advanced Fair Credit Reporting Act Certification Practice Test

(FCRA) Advanced Fair Credit Reporting Act Certification Practice Test

FCRA Consumer Rights & Dispute Resolution 4