FCRA Regulations & Legal Framework 5

Question 1

Under FCRA section 609(a), what information is a consumer entitled to receive when requesting their file disclosure from a CRA?

Accepted Answer

All information in the consumer's file, sources of that information, and a list of recent recipients of the report

Answer

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?

Accepted Answer

Section 609(f)

Answer

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?

Accepted 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

Answer

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?

Accepted Answer

The earlier of the date of discovery of the violation or 5 years after the violation date

Answer

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?

Accepted Answer

Red Flags Rule

Answer

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.

(FCRA) Advanced Fair Credit Reporting Act Certification Practice Test

(FCRA) Advanced Fair Credit Reporting Act Certification Practice Test

FCRA Regulations & Legal Framework 5