FCRA and Reg V: Fraud Alerts and Identity Theft

Question 1

What are the three types of fraud alerts?

Answer 1

1. Initial alert
2. Extended alert
3. Active duty alert

Question 2

How long must a lender retain record of initial fraud alerts?

Answer 2

Initial fraud alerts must remain in the file of the consumer for a period of not less than one year

Question 3

Under what circumstance would a consumer reporting agency place an extended alert on the consumer report and for how long?

Answer 3

Consumer reporting agencies must include an extended fraud alert if the consumer provides an identity theft report

Extended alerts must remain active for seven years.

Question 4

Under what circumstance would a consumer reporting agency place an active duty alert on the consumer report and for how long?

Answer 4

Consumer reporting agencies must include an active duty alert on receipt of a request from an active duty military consumer.

Active duty alerts must remain active for 12 months.

Question 5

What happens when one of the three alerts is in place?

Answer 5

Users must contact the consumer by the telephone number provided by the consumer, or take reasonable steps to verify the consumer’s identity.

Question 6

What are the rights of victims of identity theft (as they pertain to FCRA)?

Answer 6

Victims have the right to:

• Obtain documents relating to fraudulent transactions
• Obtain information from a debt collector
• Request consumer reporting agencies to place fraud alerts in your file
• Obtain a security freeze
• Dispute and request removal of negative information on a credit report as a result of identity theft. Furnishers and CRAs are prohibited from re-polluting the credit report