FCRA Flashcards
What does FCRA mean?
Fair Credit Reporting Act
Purpose of FCRA?
Governs access to consumer credit report records and promotes accuracy, fairness, and the privacy of personal information assembled by Credit Reporting Agencies (CRAs)
FCRA’s regulation?
Regulation V
What information may a consumer report contain?
Information bearing on a consumer’s
* credit worthiness
* credit standing
* credit capacity
* character
* general reputation
* personal characteristics
* mode of living
This includes
* Negative information about an individual for up to seven years
* Bankruptcies can be reported for up to ten years
* No limitation on reporting information related to
* criminal convictions
* a response to a job application with a salary of more than $75,000
* a response to an application for credit or life insurance in an amount exceeding $150,000.
Who may request or use a consumer credit report
- The consumer for any reason
- To assist in the evaluation of an application for credit
- By a potential investor, servicer, or current insurer to determine the value of the credit or the prepayment risk associated with an existing credit obligation
- By a creditor or insurer in the solicitation of credit or insurance offers
What happens when a lender denies an application based on information obtained from a consumer credit reporting agency?
It must provide the consumer with an adverse action notice.
The notice must include the following information:
- That the adverse action was taken based in whole or in part on information received from a credit reporting agency
- The name, address, and telephone number of the credit reporting agency providing the information
- Notice that the credit reporting agency does not know particular information regarding the adverse action
- A statement advising that the consumer is entitled to a free copy of the consumer report, if the request is made within 60 days, and to contest any information contained in the report
If a consumer disputes the contents of a consumer credit report, the reporting agency must, in general, investigate and make a determination within 30 days of its receipt of the dispute
Notice of Right to Receive Credit Score and to Dispute Its Accuracy
Required by: FACTA
Due: During the loan transaction
What does FACTA mean?
Fair and Accurate Credit Transaction Act
Purpose of FCRA?
Implements requirements for financial institutions and creditors to develop and implement written identity theft prevention programs
FACTA is an amendment to ___
FCRA
What does CRA mean?
Consumer Reporting Agency
