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Additional CRCM > Fair Credit Reporting Act > Flashcards

Fair Credit Reporting Act Flashcards

1
Q

A consumer report is what?

A

Written or Oral communication bearing an individual creditworthiness or reputation

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2
Q

Consumer reports are covered under FCRA when it is used to establish

A

Credit for personal reasons

Employment purposes

Any other authorized purpose

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3
Q

Consumer report does not include

A

A transaction report only

A experience report

Information between affiliates

An investigative report for a prospective employer

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4
Q

What must a consumer reporting agency do with obsolete information

A

Purge it

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5
Q

What is the maximum a consumer reporting agency can report negative information

A

7 years

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6
Q

What is the maximum years a consumer reporting agency can report bankruptcies

A

10 years unless the information is related to credit insurance for $150k or more

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7
Q

What are permissible purposes for furnishing a credit report

A

Authorization from customer in writing

Court order

Insurance transaction

Employment purposes

Legitimate business need

To obtain prescreened consumer info

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8
Q

If a credit report is pulled for employment purposes the employer must at first.

A

Disclose to the individual in writing a consumer report may be obtained

Must obtain written authorization from the consumer

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9
Q

The requirements for user of consumer reports are

A

Give an oral or written communication when consumer report information leads to

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10
Q

What are the four things to be considered a legitimate business need

A

Connection with a business transaction initiated by consumer

For use by potential investors

To determine if consumer still qualifies for terms

If the consumer is liable for a business debt

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11
Q

Adverse actions include denial of

A

Credit

Insurance

Checking account

Renewal of insurance or credit

Employment

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12
Q

If information from a credit report was used to make the adverse decision, the user must disclose what to the customer

A

The.
Name
Address
And a 800 telephone number of the credit reporting agency

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13
Q

When the consumer is made aware of the name, address, and consumer reporting agency that provided the report that caused the adverse action what else must be disclosed

A

A statement the consumer reporting agency did. It make the decision

Let the consumer know they can obtain a free copy of the credit report in 60 days

Let the consumer know they can dispute the accuracy and completeness of the report

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14
Q

If information form a third party is used to make the adverse decision, the user must

A

Notify the consumer of the action

Let consumer know they can see what he information if requested within 60 days

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15
Q

Creditors of consumer reports may also use information if a transaction was not initiated by the consumer if

A

The information is limited to name, address, and a unique credit identifier

The user let’s the consumer know information from a credit report was used in connection with the transaction

The consumer received the offer because they met the criteria

The offer can not be extended if consumer fails to meet initial criteria or does not furnish requir d collateral

Has the right to opt out of prescreened offers

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16
Q

If an enity made a solicitation offer how long must the file be maintained on file showing the criteria used to select the consumer

A

3 years after the offer is made

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17
Q

If an employer uses a report in whole or part to take an adverse action, the must provide the consumer with

A

A copy of the report

A description of the consumer rights under FCRA

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18
Q

Users must implement procedures to allow them at the time they receive a notice of address discrepancy to

A

Form a reasonable belief that the consumer making the request is the right consumer

They can verify this by

Verifying consumer information with third party or consumer

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19
Q

When a user receives a notice of address discrepancy they should have policies to ensure that the credit reporting agency receives

A

The correct address going forward

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20
Q

What is a covered account

A

Accounts that involve continuing relationships establishes for personal that permit multiple payments or transactions

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21
Q

Should an institution perform risk assessments to determine whether they offer or maintain covered accounts

A

Yes. They should take into consideration
Methods used to open account
Methods provided to access accounts
Previous experience with identity theft

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22
Q

Institutions with covered accounts should establish an identity theft program that can

A

Detect
Prevent
Mitigate
The Identity theft with opening and closing of a covered account

The program must be appropriate to the size and complexity of the bank

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23
Q

Elements of an identity theft program include

A

Identification of relevant red flags

Respond appropriately to red flags

Ensure program is updated periodically

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24
Q

Administration of the identity theft program includes

A

Approval from the board
Involve a board member in the implementation of the plan
Regularly train staff
Exercise program oversight of service providers

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25
Q

Card issuers must implement what

A

Reasonable policies to assess the validity of address changes

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26
Q

If a address change or card replacement request is received in less than ____ days then what type of validation should occur

A

Address

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27
Q

Any communication with the card holder regarding a address validation should be mailed how

A

Seperatly from regular correspondence.

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28
Q

A risk basked pricing notice is required when

A

If you used a credit report to make a decision

You grant different terms based on the strength of the consumer

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29
Q

What type of credit is excluded from risk based pricing

A

Business

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30
Q

When must a risked basked pricing notice be provided to the consumer

A

When the offered terms are less favorable than what is overed to other consumers

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31
Q

Some material risk basked pricing terms used to make direct comparisons of terms of credit

A

Apr

For a credit with no apr. fee or required deposit

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32
Q

Creditors can use the score proxy alternative to make direct comparisons for identitying consumers being awarded less favorable credit. Methods include

A

A cut off score

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33
Q

Ways used inDetermining the cutoff for the credit score proxy are

A

Sampling approach

Acquiring a portfolio - using their cut off score

Recalculating cutoff scores - every two years

Secondary source - I.e market research

Using two or more scores

No credit score available- automatically receive less favorable terms

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34
Q

Lenders that set material terms of credit by placing consumers within discrete pricing tiers based on the consumer credit report must provide what to all consumers who are not in the top tier or tiers

A

Risk based pricing notice

If 4 tiers - all except top tier would get notice

If 5 or more tiers - all except top two tiers would get notice

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35
Q

What must be provided when a lender uses a consumer report in a review of an existing account and increases the APR

A

A risk based pricing notice

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36
Q

What are general contents of a general risk based pricing notice

A

Includes information about credit history

Terms are based on credit report information

Terms may be less favorable

Consumer has right to verify accuracy

Credit reporting agency that sent the information

You have 60 days to request a copy

How to obtain a credit report

You can go to FTC site for more info

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37
Q

Risk based pricing notice for an account review when the rate changes should include

A

Consumer report includes info about your credit history

We conducted a review of you account

Your APR has been increased

You have right to verify

Who furnished the credit report

How to obtain a credit report

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38
Q

Risk based pricing notices should be —

A

Clear and conspicuous

Oral, written.’, electronic

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39
Q

For closed end loans, risk based pricing notices must be provided before

A

Consumption

40
Q

For open end loans, risk based pricing notice should be provided before

A

First tranamsaction

41
Q

For review accounts, the risk based pricing notice should be given

A

At the time the decision is made to raise the APR

42
Q

For automobile loans the risk based pricing notice can be given

A

By the lender as long as they the bank makes sure the lender has a process to make sure the borrower receives it on time

43
Q

For risk based pricing with multiple scores, the notice includes information on the credit score that was used to make

A

The decision

44
Q

If risk based pricing averaged two scores, notice should include

A

Information on at least one of them

45
Q

If multiple consumers, a risk based pricing notice should be provided to

A

Each

46
Q

If risk based pricing notice is not required

A

A consumer Gets the credit that they requested on the terms they wanted

A consumer that received a adverse action

Consumer was part of a prescreened solicitation

Extension of credit for a one to four family residence

47
Q

Account review notices for single family residences include

A

Includes info about credit report

Score takes into account credit history

Score can determine it credit is granted

For fcra purposes, the score obtained, the factors behind the score, copy of the notice of the home loan applicant

Bar graph showing distribution of scores

You can verify information

You can request a copy without charge

Go to CFPBb website for more info

48
Q

Closed end account review risk based pricing notices must be

A

Clear and conspicuous

Provided with other FCRA notice information

Segregated from other information

Provided in writing in a form the consumer can keep

49
Q

A risk based pricing notice does not have to be provided if

A

It is a non residential property loan

The person does not have a credit score

50
Q

How many notices are required to be provided to a consumer per credit extension

A

1

51
Q

If multiple consumers, does each one receive a risk based pricing notice

A

Yes, that contains only their score. Even if the consumers have the same address

If the notice does not contain the score the a single notice can be sent when addressed to the same address

52
Q

Banks must properly dispose of any consumer information they maintain or other wise process in accordance with

A

Interagency guidelines for establishing information security standards

53
Q

Credit information providers must furnish information nuthatch is

A

Accurate

54
Q

Can a furnished report information they know is inaccurate if the consumer notified them

A

No

55
Q

If an information provider determines that it has made an inaccurate report it must

A

Promptly correct and update the information

56
Q

If a consumer disputes information that has been reported, the furnished must

A

Also include a notification that the consumer disputes the accuracy of the information

57
Q

If after investigation any item on a report is found to be inaccurate, incomplete, or unverifiable the consumer reporting agency must

A

Promptly modify the information

Promptly notify the furnished that the information has been modified

58
Q

After receiving notice of dispute from a consumer reporting agency the provider must

A

Conduct a complete investigation

Review all relevant information report the results of the investigation to all consumer reporting agencies

59
Q

If a consumer notifies a furnisher that information its maintaining results from identity theft, and submits an identity theft report, the furnisher may not

A

Furnish such information to consumer reporting agency unless it knows or is informed by the consumer that the information is correct

60
Q

How long can the put a fraud alert on their credit report

A

90 day

61
Q

If the consumer specifies a telephone number on a fraud report

A

The user of that report must contact the consumer at number or take reasonable steps to verify the consumer identity

62
Q

Consumer reporting agencies must include extended fraud alerts if the consumer provided what

A

Identity theft report such as a police report

63
Q

If a consumer reporting agency receives an active duty alert

A

It must put an alert on the consumer file for 12 months

64
Q

Reasonable procedures for proof of identify proof of identity for consumer reporting include

A

Ensure information is sufficient to allow a match

Be able readily to adjust information

65
Q

For prescient notices the bank must provide

A

A short and a long form prescreen notice

66
Q

What must the short form notice contain

A

Clear and conspicuous

You can opt out if you call this 1-800 number

Go see the long notice

Not less than 12 don’t

Front page of solicitation

67
Q

The long prescient notice must be

A

Say required by FACT act

Must be in solicitation

Don’t no smaller than 8

Must say in all caps. Prescreen and opt out notice

68
Q

If an institution wants to use information from an affiliate the

A

Consumer has to be made aware in writing

The consumer if given a chance to opt out

The consumer did not opt out

69
Q

A bank is considered to have received solicitation maerketing information from an affiliate of

A

It used it to determine who to send the solicitation to

Uses it to establish the criteria on who to select

Decide what products or services to sell them

70
Q

Opt out rules do not apply if

A

There is a pre existing relationship

Bank supplies employee benefits to the person

The bank is performing services on behalf of affiliate

The bank is reacting to a consumer initiated request

71
Q

A consumer opt out must be effective for how long

A

5 Year’s from when the consumer notice is received

72
Q

If joint relationships, how many opt out notices should be sent

A

One

73
Q

Content of opt out notices include

A

Clear, conspicuous, and concise

Name of affiliate

Describe type of eligibility information being used

Let the consumer know they do not have to renew the notice

74
Q

Can opt out notices be consolidated with other notices

A

Yes

75
Q

Means of opting out

A

Check boxes

Self addressed envelope

Electronic means

To free number

76
Q

After an opt out expires the consumer must receive what first before he can receive solicitations again

A

A renewal notice and it must be provided by the affiliate that provided the original notice

77
Q

How soon should the renewal opt out notice be sent

A

A reasonable time before the expiration of the original opt out notice

78
Q

What are the consumer credit report seven characteristics

A 
Creditworthiness 
Credit standing
Credit capacity
Character 
General Reputatiin
Personal Characteristics 
Mode of living
79
Q

What is not a credit report

A

Transaction and experience info

Reporting credit to a third party at the consumers request

Communication to Affliates if transactions and experience, notice of sharing to opt out

80
Q

Consumer Reports must include

A

Credit score and key factors

Account disputed by consumer

Notice of address discrepancy

Notice of Fraud alerts

Account closed by the consumer

81
Q

Medical information is

A

Physical, mental, or behavioral health condition

The proviso of healthcare

The payment of healthcare

82
Q

Consumer reports may not furnish medical information unless

A

Written consumer consent

The information is limited to account status

83
Q

With medical information, creditors may not

A

Share medical information for other than what is provided

Obtain or use medical information to determine credit

Now debt can be considered like other debt. However reason for medical treatment can’t

84
Q

What is permissible purpose

A

CRAs may release consumer reports in limited circumstances

Credit or insurance applications or account reviews

Pre screed marketing

Written consent

Court order
Employment
Due diligence
Legitimate Business Need

85
Q

For prescreend offers the CRA must have

A

Consumer authorization

86
Q

What must the prescreened offer be

A

A firm offer of credit and must provide an opt out method

87
Q

For prescreen offers CRAs should only provide infomation to

A

Facilitate the creditor reaching the consumer to make the firm offer

The CRA may not identify specific relationships or experiences with other creditors

88
Q

Information furnished to CRAs must be ————- and full of ——

A

Accurate and integrity

89
Q

Accurate means the credit report must correctly

A

Identify the appropriate consumer

Reflect terms and liability of the account

Reflect consumer performance

90
Q

Integrity of information furnished about an account should be

A

Substantisted by the furnisher records

Designed to minimize likelihood that information may be incorrectly reflected in a consumer report

Includes information in furnisher’s possessiin CRA determines relevant

91
Q

Furnishers must have what type of policies in place

A

Reasonable written procedures regarding the accuracy and integrity of the information it furnishes to CRAs

Appropriate to size of furnisher activities
Incorporate guidelines
Reviewed periodically

92
Q

Consumers may contact the acRA to dispute information but must

A

Identify the information disputed

Explain the dispute

Provide supporting documentation

93
Q

CRA has how long to investigate a dispute

A

30 days or 45 if the consumer provides more information

94
Q

For a dispute of information with consumer report the CRA has how many days to notify the furnisher

A

5

95
Q

Exceptions to dispute within consumer reports

A

Identifying information

Identity of past or or present employers

Inquiries

Information related to alerts

Who provided information

Credit repair organization

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