FCRA Permissible Purpose & End-User Requirements

Question 1

Under FCRA Section 604, which of the following constitutes a permissible purpose for obtaining a consumer report?

Accepted Answer

A creditor reviewing an account for credit extension

Answer

Section 604(a)(3)(A) explicitly permits creditors to obtain consumer reports when reviewing or collecting on accounts for credit purposes.

Question 2

Which party bears primary responsibility for certifying permissible purpose before accessing a consumer report from a CRA?

Accepted Answer

The end user requesting the report

Answer

Under the FCRA, end users must certify to the CRA that they have a permissible purpose before the CRA may furnish the consumer report.

Question 3

A landlord seeking a consumer report on a prospective tenant would rely on which permissible purpose under Section 604?

Accepted Answer

Legitimate business need in connection with a transaction initiated by the consumer

Answer

Section 604(a)(3)(F) allows access for a legitimate business need in connection with a business transaction initiated by the consumer, which covers residential rental applications.

Question 4

Under the FCRA, obtaining a consumer report under false pretenses exposes the violator to:

Accepted Answer

Civil liability and potential criminal prosecution

Answer

Section 619 provides criminal penalties for obtaining reports under false pretenses, and Section 616 provides civil liability, making both exposures applicable.

Question 5

Which permissible purpose specifically requires written authorization from the consumer before a report may be procured?

Accepted Answer

Employment purposes

Answer

FCRA Section 604(b) requires employers to obtain written authorization from the consumer before procuring a consumer report for employment purposes.

(FCRA) Advanced Fair Credit Reporting Act Certification Practice Test

(FCRA) Advanced Fair Credit Reporting Act Certification Practice Test

FCRA Permissible Purpose & End-User Requirements