FCRA Regulations & Legal Framework 5 — Questions and Answers
Question 1: Under FCRA section 609(a), what information is a consumer entitled to receive when requesting their file disclosure from a CRA?
- Only their credit score and summary of negative items
- All information in the consumer's file, sources of that information, and a list of recent recipients of the report (Correct answer)
- Names of furnishers only, not the underlying account data
- Only information reported within the past 2 years
Correct answer: All information in the consumer's file, sources of that information, and a list of recent recipients of the report
Section 609(a) entitles consumers to all information in their file, the sources of that information, and identification of everyone who received their report in the past year (2 years for employment).
Question 2: Which FCRA section addresses the rights of consumers to receive credit scores along with key factors that adversely affected those scores?
- Section 609(f) (Correct answer)
- Section 612(a)
- Section 615(d)
- Section 605A(d)
Correct answer: Section 609(f)
Section 609(f) requires CRAs to disclose credit scores and up to four key factors that adversely affected the score upon consumer request.
Question 3: An employer uses a background screening report to rescind a job offer. Under the FCRA, before taking this adverse action, what must the employer provide?
- Immediate written denial with the CRA's contact information only
- A pre-adverse action notice with a copy of the report and a Summary of Rights, followed by a waiting period before final action (Correct answer)
- Verbal notice of denial within 24 hours
- Nothing — adverse action notices for employment are only required after the action is taken
Correct answer: A pre-adverse action notice with a copy of the report and a Summary of Rights, followed by a waiting period before final action
FCRA section 604(b)(3) requires employers to give a pre-adverse action notice with the report and Summary of Rights before the final adverse decision, allowing the consumer time to dispute.
Question 4: The FCRA's two-year statute of limitations for filing a lawsuit begins running from which point?
- The date the consumer first requested their credit report
- The earlier of the date of discovery of the violation or 5 years after the violation date (Correct answer)
- The date the violation occurred, with no discovery exception
- The date the CFPB issues a formal finding
Correct answer: The earlier of the date of discovery of the violation or 5 years after the violation date
FCRA section 618 sets a 2-year statute of limitations running from the date of discovery of the violation, with a 5-year absolute outer limit from the date of the violation.
Question 5: Which rule, implemented under the FCRA, requires financial institutions and creditors to have identity theft prevention programs for covered accounts?
- Disposal Rule
- Affiliate Sharing Rule
- Red Flags Rule (Correct answer)
- Risk-Based Pricing Rule
Correct answer: Red Flags Rule
The Red Flags Rule (Regulation V, section 1022.40-1022.44) requires covered entities to implement written programs to detect, prevent, and mitigate identity theft in covered accounts.
Question 6: A CRA receives a direct dispute from a consumer about information in their file. Under FCRA section 611, what is the CRA's maximum time to complete reinvestigation in standard cases?
- 15 business days
- 30 days (extendable to 45 with consumer-provided information) (Correct answer)
- 45 days with no extension
- 60 calendar days
Correct answer: 30 days (extendable to 45 with consumer-provided information)
Section 611 requires CRAs to complete reinvestigation within 30 days, extendable to 45 days if the consumer provides additional information during the 30-day period.
Question 7: Under FCRA section 624 (the Affiliate Sharing Rule), what right do consumers have regarding information shared among corporate affiliates?
- The right to completely block all affiliate sharing permanently
- The right to opt out of having their information shared among affiliates for marketing solicitations for 5 years (Correct answer)
- The right to sue affiliates for any sharing without express consent
- No right — affiliate sharing is entirely exempt from FCRA
Correct answer: The right to opt out of having their information shared among affiliates for marketing solicitations for 5 years
Section 624 grants consumers the right to opt out of affiliate sharing for marketing purposes for a period of 5 years, after which they may renew the opt-out.
FCRA Regulations & Legal Framework 5
Under FCRA section 609(a), what information is a consumer entitled to receive when requesting their file disclosure from a CRA?