FCRA Regulations & Legal Framework 2 — Questions and Answers
Question 1: Under the FCRA, which federal agency has primary rulemaking authority over consumer reporting agencies?
- Federal Reserve Board
- Consumer Financial Protection Bureau (CFPB) (Correct answer)
- Federal Trade Commission (FTC)
- Office of the Comptroller of the Currency
Correct answer: Consumer Financial Protection Bureau (CFPB)
The Dodd-Frank Act of 2010 transferred primary FCRA rulemaking authority from the FTC to the CFPB.
Question 2: The FCRA's section 604 governs which aspect of credit reporting?
- Dispute resolution timelines
- Permissible purposes for obtaining consumer reports (Correct answer)
- Adverse action notification requirements
- Maximum reporting periods for negative information
Correct answer: Permissible purposes for obtaining consumer reports
Section 604 of the FCRA defines the permissible purposes under which a consumer report may be furnished.
Question 3: Which FCRA provision specifically prohibits reporting medical debt information that a creditor received in connection with a transaction without the consumer's consent?
- Section 605A
- Section 623(a)(9)
- Section 604(g) (Correct answer)
- Section 609(a)(4)
Correct answer: Section 604(g)
Section 604(g) restricts furnishers from providing medical information to CRAs and restricts CRAs from sharing medical debt in connection with credit eligibility determinations.
Question 4: The FACT Act of 2003 amended the FCRA primarily to address which concern?
- Regulating payday lenders
- Identity theft prevention and credit accuracy (Correct answer)
- Expanding permissible purposes for background checks
- Limiting CRA fees for consumer disclosures
Correct answer: Identity theft prevention and credit accuracy
The Fair and Accurate Credit Transactions Act (FACT Act) added identity theft protections, fraud alerts, and free annual credit report rights to the FCRA.
Question 5: Under FCRA section 605, which negative item type has the longest standard reporting period?
- Late payments (30-day)
- Chapter 7 bankruptcy (Correct answer)
- Tax liens
- Civil judgments
Correct answer: Chapter 7 bankruptcy
Chapter 7 bankruptcy may be reported for up to 10 years from the date of filing, the longest standard period under FCRA section 605.
Question 6: Which FCRA provision allows consumers to place an 'extended fraud alert' and what is its duration?
- Section 605A; 90 days
- Section 605B; 7 years
- Section 605A; 7 years (Correct answer)
- Section 609; 1 year
Correct answer: Section 605A; 7 years
Section 605A permits identity theft victims to place an extended fraud alert lasting 7 years, compared to the initial 1-year alert.
Question 7: The 'Gramm-Leach-Bliley Act' (GLBA) intersects with the FCRA in which primary way?
- It grants consumers the right to opt out of all credit reporting
- It governs financial privacy and sharing of non-public personal information, complementing FCRA's information accuracy rules (Correct answer)
- It replaces FCRA for depository institutions
- It sets FCRA civil penalties for banks
Correct answer: It governs financial privacy and sharing of non-public personal information, complementing FCRA's information accuracy rules
The GLBA governs financial institution privacy practices and data sharing, which complements FCRA's accuracy and permissible-use framework for consumer financial data.
FCRA Regulations & Legal Framework 2
Under the FCRA, which federal agency has primary rulemaking authority over consumer reporting agencies?