FCRA Flashcards
- The Fair Credit Reporting Act (FCRA) was passed in 1970 to protect an individual’s what?
privacy rights and to ensure accurate and fair credit reporting.
- FCRA is known as what Regulation
Regulation V
What is FCRA’s intent?
To protect consumers from the willful and/or negligent inclusion of inaccurate information on their credit report
What does FCRA stand for?
Fair Credit Reporting Act
What agency compiles databases of information received from creditors?
Credit Reporting Agencies
What are the three national reporting agencies?
Experian, TransUnion, and Equifax
FCRA gives consumers access to the (same, more, less) information about themselves that lenders use when making credit decisions.
same
What rights does the consumer have under FCRA?
- Right to an Adverse Action Notice (Denial Letter)
- Right to a free copy of the Consumer Credit File/Credit Report
- Right to request his/her Credit Score (although not free)
- Right to dispute incomplete or inaccurate information found on his/her credit report
- Right to Limited Prescreen Offers of credit and insurance based on information on their credit report
The credit report must be based on data provided by which national credit repositories?
Equifax, Experian, or Transunion
What must a traditional credit report include?
Both credit and public record information for each locality in which the borrow has resided during the most recent two-year period.
How long can bankruptcy information be kept on the credit report?
10 years
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?
one month
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.
Two, Five
What is the penalty for violating the FCRA?
up to $1,000
How long do paid tax liens stay on the credit report?
7 years from the time they were paid
How long do unpaid tax liens stay on the credit report?
Forever
How long does a judgement stay on the credit report?
7 years
Do criminal convictions expire once and if they are entered onto a consumer’s credit report?
No they DO NOT expire
Who should a consumers contact if they have questions regarding their credit report or score?
The Credit Reporting Agency
Who should a consumer contact if they have questions regarding their application?
Their lender
What is the range for FICO credit scores?
300-850
When are borrowers entitled to a free credit report under Regulation V?
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.
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?
The name, address, and phone number of the agency that provided the information
