#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
Which of the following is NOT considered a consumer report under the Fair Credit Reporting Act?
Medical records
ExplanationMedical records are not considered consumer reports under FCRA.
#9
What is a 'consumer reporting agency' under the FCRA?
Any entity that provides consumer credit reports
ExplanationEntities providing consumer credit reports are 'consumer reporting agencies' under FCRA.
#10
Under the FCRA, what is the definition of 'adverse action'?
Any action related to credit, insurance, or employment that is unfavorable to the consumer
ExplanationAdverse action encompasses unfavorable credit, insurance, or employment-related decisions under FCRA.
#11
Under the Fair Credit Reporting Act (FCRA), when can a consumer reporting agency (CRA) provide a consumer report to an employer for employment purposes?
Only with the written consent of the consumer
ExplanationCRAs can provide consumer reports to employers for employment purposes only with consumer's written consent under FCRA.
#12
What is the purpose of the Fair Credit Reporting Act's (FCRA) 'firm offer of credit' provision?
To allow lenders to make pre-approved credit offers to consumers
ExplanationFCRA's 'firm offer of credit' provision enables lenders to extend pre-approved credit offers to consumers.
#13
Which of the following is true about the Fair Credit Reporting Act (FCRA) and medical information?
The FCRA prohibits the inclusion of medical information in consumer reports without the consumer's consent
ExplanationFCRA prohibits inclusion of medical info in consumer reports without consent.
#14
Which of the following actions is considered an 'adverse action' under the Fair Credit Reporting Act (FCRA)?
Denying a consumer's credit application
ExplanationDenying a consumer's credit application is an adverse action under FCRA.
#15
What is the purpose of the Fair Credit Reporting Act's (FCRA) 'pre-screening' provisions?
To allow lenders to make pre-approved credit offers based on certain criteria
ExplanationFCRA's 'pre-screening' provisions facilitate lenders to extend pre-approved credit offers based on specific criteria.
#16
Under the FCRA, what is the maximum time limit for a consumer reporting agency (CRA) to keep negative information on a consumer's credit report?
7 years
ExplanationCRAs can retain negative info on a consumer's credit report for a maximum of 7 years under FCRA.
#17
What is the maximum penalty for willfully violating the FCRA?
There is no maximum penalty
ExplanationNo maximum penalty exists for willful FCRA violations.
#18
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.
#19
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.
#20
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.
#21
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.
#22
Under the FCRA, how long does negative information, such as late payments, bankruptcies, or judgments, stay on a credit report?
7 years
ExplanationNegative info like late payments, bankruptcies, or judgments stays on credit reports for 7 years under FCRA.
#23
What is the purpose of the Fair Credit Reporting Act's (FCRA) 'permissible purpose' requirement?
To limit who can access a consumer's credit report
ExplanationFCRA's 'permissible purpose' requirement restricts access to consumer credit reports.
#24
Which of the following statements about the Fair Credit Reporting Act (FCRA) is true?
The FCRA applies to all consumer credit reports, including those used for employment purposes
ExplanationFCRA applies to all consumer credit reports, including those for employment purposes.
#25
Under the FCRA, what is the purpose of the 'reinvestigation' process?
To allow consumers to dispute inaccurate information on their credit reports
ExplanationThe 'reinvestigation' process under FCRA enables consumers to dispute inaccurate credit report information.