FCRA REG V Flashcards
- The Fair Credit Reporting Act (FCRA) was passed in 1970 to protect an individual’s privacy rights and to ensure accurate and fair credit reporting.
protect an individual’s privacy rights and to ensure accurate and fair credit reporting.
- FCRA is known as
Regulation V.
- FCRA’s primary intent is to protect consumers from the willful and/or negligent -
inclusion of inaccurate information on their credit reports.
- The Fair Credit Reporting Act is enforced by the
FTC (the Federal Trade Commission.)
- The three national credit reporting agencies (CRAs) are -
Experian, Trans Union And Equifax
- Credit Reporting Agencies (CRAs) compile databases of -
information received from creditors.
- FCRA gives consumers access to the same information about -
themselves that lenders use when making credit decision
- Gives consumers access to the same information about themselves that lenders use when making credit decisions
FCRA
- FCRA states that the consumer has the right to
an Adverse Action Notice (Denial Letter)
- FCRA states that the consumer has a right to a free copy of
Credit REPORT (NOT Credit SCORE)
- FCRA states that the consumer has a right to
request his/her Credit SCORE (Although the score IS NOT FREE).
- FCRA states that the consumer has the right to
dispute incomplete or inaccurate Information found on his/her credit report.
- FCRA states that the consumer has the right to LIMIT Prescreened Offers of credit and insurance based on information in their credit report.
- The credit report must be based on data provided by
the following national credit repositories—Equifax, Experian, or TransUnion.
- A traditional credit report must include both _________________ for each locality in which the borrower has resided during the most recent two-year period.
credit and public record information
- Bankruptcy information can be kept in the credit report for
10 years in the Credit Report
- 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 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 two years after the violation is discovered or five years after it
occurs, whichever is sooner. The penalty is up to $1,000.
- Paid tax liens can be kept in the credit report for
7 years from the time they were paid
- Unpaid tax liens stay on your credit report ______
forever
- A Judgment remains on credit report for ______.
7 years.
- Criminal convictions DO NOT expire once (and if) they are entered onto a consumer’s credit report.
THEY DO NOT EXPIRE
- Consumers should contact their “LENDER” if they have questions about their“ APPLICATION”, and they should contact the
“Credit Reporting Agency” if they have questions about their “credit” scores.
- The range of possible FICO credit scores are
300 to 850
- Borrowers are entitled to a free credit report if
the lender takes adverse action against them.
- 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 the name, address and phone number of the agency that provided that information.
provide the consumer with the name, address and phone number of the agency that provided the credit information.
- Consumers are Entitled to free copy of credit REPORT/FILE under Regulation V if:
Information resulted in adverse action (denial),
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.
