FCRA Regulations & Legal Framework 3

Question 1

Under the FCRA, a 'consumer reporting agency' is defined by which key characteristic?

Accepted Answer

It regularly assembles or evaluates consumer information for the purpose of furnishing consumer reports to third parties

Answer

The FCRA defines a CRA as any entity that regularly assembles consumer credit information for the purpose of furnishing consumer reports to third parties.

Question 2

Which FCRA section requires that users of consumer reports provide adverse action notices?

Accepted Answer

Section 615

Answer

Section 615 requires users who take adverse action based wholly or partly on a consumer report to provide the consumer with specific disclosures.

Question 3

A nationwide consumer reporting agency must make free annual disclosures available to consumers. Under which FCRA provision is this requirement codified?

Accepted Answer

Section 612

Answer

Section 612 of the FCRA requires nationwide CRAs to provide consumers one free file disclosure per 12-month period upon request.

Question 4

Under the FCRA's 'investigative consumer report' rules, what additional disclosure must users provide before ordering such a report?

Accepted Answer

Written disclosure within 3 days of the request and consumer's right to request interview information

Answer

Section 606 requires users to provide written disclosure within 3 days of requesting an investigative report and to inform the consumer of their right to request the nature and scope of the investigation.

Question 5

The FCRA preempts state credit reporting laws in certain areas but expressly preserves state laws in others. Which of the following areas is FCRA preemption MOST limited?

Accepted Answer

State laws that impose requirements on CRAs that are inconsistent with federal FCRA provisions

Answer

FCRA preemption is most limited — meaning states retain the most authority — where state laws impose requirements that go beyond rather than conflict with federal FCRA provisions.

(FCRA) Advanced Fair Credit Reporting Act Certification Practice Test

(FCRA) Advanced Fair Credit Reporting Act Certification Practice Test

FCRA Regulations & Legal Framework 3