FCRA

Question 1

227. The Fair Credit Reporting Act (FCRA) was passed in 1970 to protect an individual’s what?

Answer 1

privacy rights and to ensure accurate and fair credit reporting.

Question 2

228. FCRA is known as what Regulation

Answer 2

Regulation V

Question 3

What is FCRA’s intent?

Answer 3

To protect consumers from the willful and/or negligent inclusion of inaccurate information on their credit report

Question 4

What does FCRA stand for?

Answer 4

Fair Credit Reporting Act

Question 5

What agency compiles databases of information received from creditors?

Answer 5

Credit Reporting Agencies

Question 6

What are the three national reporting agencies?

Answer 6

Experian, TransUnion, and Equifax

Question 7

FCRA gives consumers access to the (same, more, less) information about themselves that lenders use when making credit decisions.

Answer 7

same

Question 8

What rights does the consumer have under FCRA?

Answer 8

1. Right to an Adverse Action Notice (Denial Letter)
2. Right to a free copy of the Consumer Credit File/Credit Report
3. Right to request his/her Credit Score (although not free)
4. Right to dispute incomplete or inaccurate information found on his/her credit report
5. Right to Limited Prescreen Offers of credit and insurance based on information on their credit report

Question 9

The credit report must be based on data provided by which national credit repositories?

Answer 9

Equifax, Experian, or Transunion

Question 10

What must a traditional credit report include?

Answer 10

Both credit and public record information for each locality in which the borrow has resided during the most recent two-year period.

Question 11

How long can bankruptcy information be kept on the credit report?

Answer 11

10 years

Question 12

The FCRA requires that credit reporting agencies inform Consumers about negative information that is in the process of being placed, or has already been placed, on a consumer’s credit report within what time frame?

Answer 12

one month

Question 13

Credit Reporting Agencies, users of consumer reports, and furnishers of information may be held civilly liable for violations under FCRA. The statute of limitations to bring a lawsuit is ___ years after the violation is discovered or ___ years after it occurs, whichever is sooner.

Answer 13

Two, Five

Question 14

What is the penalty for violating the FCRA?

Answer 14

up to $1,000

Question 15

How long do paid tax liens stay on the credit report?

Answer 15

7 years from the time they were paid

Question 16

How long do unpaid tax liens stay on the credit report?

Answer 16

Forever

Question 17

How long does a judgement stay on the credit report?

Answer 17

7 years

Question 18

Do criminal convictions expire once and if they are entered onto a consumer’s credit report?

Answer 18

No they DO NOT expire

Question 19

Who should a consumers contact if they have questions regarding their credit report or score?

Answer 19

The Credit Reporting Agency

Question 20

Who should a consumer contact if they have questions regarding their application?

Answer 20

Their lender

Question 21

What is the range for FICO credit scores?

Answer 21

300-850

Question 22

When are borrowers entitled to a free credit report under Regulation V?

Answer 22

If the lender takes adverse action against them (denial), if the consumer is a victim of identity theft (with fraud alert), there is inaccurate information as a result of fraud on the credit report, or the consumer is receiving public assistance or unemployment benefits.

Question 23

Any entity that uses a credit report or another type of consumer report to deny an application for credit, insurance, or employment, MUST provide the consumer with what?

Answer 23

The name, address, and phone number of the agency that provided the information