FCRA

Question 1

Under the FCRA, how long can CRAs keep a bankruptcy in a credit report after it was paid? A tax lien?

Answer 1

10 years

7 years

Question 2

What is the purpose of the Fair Credit Reporting Act?

Answer 2

Congress passed the Fair Credit Reporting Act (FCRA) in 1970 to protect an individual’s privacy rights and to ensure accurate and fair credit reporting. It is enforced by the Federal Trade Commission.

It mainly regulates the behavior of Credit Reporting Agencies. The act gives consumers the right to challenge negative information in their credit reports, and it requires CRAs to take steps to verify challenged information, and fix it if it’s inaccurate.

It also regulates who is allowed to access a consumer’s credit information: creditors, insurers, employers, and other businesses that use the information in the report to evaluate applications for credit, insurance, employment, or renting a home.

Question 3

Under the FCRA, borrowers are entitled to a free credit report within _ days of what happening?

Answer 3

60 days of a creditor taking adverse action against the applicant