Credit Laws- Reg V (FCRA & FACTA) Flashcards

1
Q

What does FCRA stand for?

A

Fair Credit Reporting Act

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2
Q

What regulation is the Fair Credit Reporting Act?

A

Regulation V

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3
Q

What does FCRA do?

A

it ensures consumer rights and credit reporting agency responsibilities

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4
Q

According to FCRA, consumers have the right to ________ info on credit reports.

A

dispute

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5
Q

According to FCRA, what do consumers have the right to request (but may still have to pay money for)?

A

a credit score

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6
Q

What does AAN stand for?

A

Adverse Action Notice

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7
Q

When does a consumer have free access to a credit REPORT?

A
  • 60 days from receipt of AAN
  • victim of identity theft or fraud/fraud alert
  • on public assistance or unemployed
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8
Q

When must an AAN be sent?

A

When borrower is denied due to credit

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9
Q

What must be done when a borrower is denied due to income?

A

“Nothing”; Does NOT necessarily trigger AAN

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10
Q

When is all negative credit report info considered “out-dated” and must be removed from report?

A
  • 7 years for all info (collections, judgements, ch 13 BR, liens, charge-offs, foreclosures)
  • 10 years for ch 7 BR
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11
Q

What does a consumer have the right to limit?

A

Consumer has the right to limit prescreened offers

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12
Q

What does FACTA stand for?

A

Fair and Accurate Credit Transactions Act

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13
Q

What Regulation is the Fair and Accurate Credit Transaction Act?

A

Regulation V

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14
Q

What is the purpose of FACTA?

A

To empower consumers to prevent the growing crime of identity theft

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15
Q

How frequently can a person receive a free credit report?

A

Every 12 months

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16
Q

Under FACTA, what are borrowers able to place on their file?

A

a credit freeze and a fraud alert

17
Q

What is one requirement for lenders under FACTA regarding credit report info?

A

Credit report info must be secure and disposed to prevent identity theft

18
Q

What is Section 114 of FACTA?

A

Red Flags Rule

19
Q

What do the Red Flag Rules do?

A

The Red Flag Rules address discrepancies and says that change of address requests must be verified

20
Q

FACTA says that lenders must have a WRITTEN what?

A

Must have a WRITTEN identity theft prevention program