Credit Laws- Reg V (FCRA & FACTA) Flashcards
What does FCRA stand for?
Fair Credit Reporting Act
What regulation is the Fair Credit Reporting Act?
Regulation V
What does FCRA do?
it ensures consumer rights and credit reporting agency responsibilities
According to FCRA, consumers have the right to ________ info on credit reports.
dispute
According to FCRA, what do consumers have the right to request (but may still have to pay money for)?
a credit score
What does AAN stand for?
Adverse Action Notice
When does a consumer have free access to a credit REPORT?
- 60 days from receipt of AAN
- victim of identity theft or fraud/fraud alert
- on public assistance or unemployed
When must an AAN be sent?
When borrower is denied due to credit
What must be done when a borrower is denied due to income?
“Nothing”; Does NOT necessarily trigger AAN
When is all negative credit report info considered “out-dated” and must be removed from report?
- 7 years for all info (collections, judgements, ch 13 BR, liens, charge-offs, foreclosures)
- 10 years for ch 7 BR
What does a consumer have the right to limit?
Consumer has the right to limit prescreened offers
What does FACTA stand for?
Fair and Accurate Credit Transactions Act
What Regulation is the Fair and Accurate Credit Transaction Act?
Regulation V
What is the purpose of FACTA?
To empower consumers to prevent the growing crime of identity theft
How frequently can a person receive a free credit report?
Every 12 months
Under FACTA, what are borrowers able to place on their file?
a credit freeze and a fraud alert
What is one requirement for lenders under FACTA regarding credit report info?
Credit report info must be secure and disposed to prevent identity theft
What is Section 114 of FACTA?
Red Flags Rule
What do the Red Flag Rules do?
The Red Flag Rules address discrepancies and says that change of address requests must be verified
FACTA says that lenders must have a WRITTEN what?
Must have a WRITTEN identity theft prevention program
