#1
Which agency enforces the Fair Credit Reporting Act (FCRA)?
Federal Trade Commission (FTC)
ExplanationFTC enforces FCRA regulations.
#2
What is the primary purpose of the Fair Credit Reporting Act?
To ensure accuracy, fairness, and privacy of consumer information
ExplanationFCRA aims to safeguard consumer data accuracy, fairness, and privacy.
#3
Under the FCRA, consumers have the right to request a free copy of their credit report from each of the nationwide credit reporting companies:
Once every 12 months
ExplanationConsumers can request free credit reports annually under FCRA.
#4
Which of the following is NOT a permissible purpose under the FCRA for obtaining a consumer report?
For marketing purposes without the consumer's consent
ExplanationObtaining consumer reports for marketing without consent violates FCRA.
#5
Which of the following is a right granted to consumers under the Fair Credit Reporting Act?
The right to dispute inaccurate information on their credit report
ExplanationConsumers have the right to dispute inaccurate credit report information under FCRA.
#6
What is the statute of limitations for bringing a private lawsuit under the FCRA?
3 years
ExplanationPrivate FCRA lawsuits must be filed within 3 years.
#7
Under the FCRA, how long can negative information typically remain on a consumer's credit report?
7 years
ExplanationNegative information can stay on credit reports for up to 7 years under FCRA.
#8
What is the maximum penalty for willfully violating the FCRA?
There is no maximum penalty
ExplanationNo maximum penalty exists for willful FCRA violations.
#9
Which of the following is true about consumer reporting agencies (CRAs) under the FCRA?
They are required to investigate disputes within 30 days
ExplanationCRAs must investigate disputes within 30 days as per FCRA.
#10
What is the purpose of the Fair and Accurate Credit Transactions Act (FACTA)?
To protect consumers from identity theft
ExplanationFACTA aims to safeguard consumers from identity theft.
#11
What is the purpose of the Fair Credit Reporting Act's 'accuracy and fairness' provisions?
To ensure that consumer reports are accurate and fair to the consumer
ExplanationFCRA provisions aim to guarantee accuracy and fairness in consumer reports.
#12
Which of the following is NOT a right granted to consumers under the Fair Credit Reporting Act?
The right to dispute inaccurate information on their credit report
ExplanationDisputing inaccurate credit report information is a right under FCRA.