FCRA (Fair Credit Reporting Act)

Question 1

What does FCRA stand for, what is its regulation, and what is its purpose?

Answer 1

FCRA stands for Fair Credit Reporting Act; Regulation V (“We want a Very good credit report); and it deals with credit reporting agencies (Equifax/Trans Union/Experian); and to ensure accurate & fair credit reporting.

Question 2

According to Regulation V, what are a consumer’s five rights?

Answer 2

1. ) The right to an Adverse Action Notice (Denial Letter).
2. ) Free copy of consumer credit file/credit report.
3. ) Request credit score.
4. ) The right to dispute incomplete or inaccurate information.
5. ) The right to limit prescreened offers.

Question 3

(FCRA) If an entity uses a credit report or another consumer report to deny an app. for credit/insurance/or employment, the entity must provide the consumer with what information regarding the credit report origins?

Answer 3

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

Question 4

(FCRA) In what other situations are consumers entitled to a free copy of their credit file/report under Regulation V?

Answer 4

1. ) If information resulted in adverse action (denial).
2. ) Victim of identity theft (w/ fraud alert).
3. ) Inaccurate info as a result of fraud.
4. ) On public assistance or unemployment.

Question 5

(FCRA) How long does Credit Reporting Agencies report Negative Credit Information?

Answer 5

7 years (Credit Reporting Agencies may not report outdated negative credit information).

Question 6

(FCRA) How long does Credit Reporting Agencies report Bankruptcies?

Answer 6

10 years (Credit Reporting Agencies may not report outdated negative credit information).

Question 7

(FCRA) How long does Credit Reporting Agencies report Criminal Conviction?

Answer 7

Does not expire in most states (Credit Reporting Agencies may not report outdated negative credit information).

Question 8

(FCRA) Creditors must limit access to credit file to ONLY those with _____.

Answer 8

Legitimate Business Needs