Financial Privacy Flashcards
Fair credit reporting act USERS
lenders, insurers, employers etc
Fair Credit reporting act furnishers
lenders, retailers, etc
Consumer Reporting Agencies (CRAs)
CRAs compile or evaluate personal information to furnish consumer reports to third parties for a fee
A consumer report is:
any communication by a CRA related to an individual that is used to establish
eligibility for credit, insurance, employment, etc.
Fair credit reporting act provides the following privacy rights in consumer reports
Accurate and relevant data collection • Consumer access and correction • Limits use to “permissible purposes” • Maintain records • Provide consumer assistance defined by FTC
How is the fair credit reporting act enforced?
FTC, CFPB, state attorneys general
Dispute resolution; private right of action
Fair and accurate credit transactions act requires:
Truncation of credit and debit card numbers
Consumer right to an explanation of their credit scores
Consumer right to a free annual credit report from each of the three national credit agencies
True/False Fair and accurate transactions act preempts most stricter state laws
True
Two rules to Fair and accurate credit transaction act
Disposal Rule and Red Flag Rule
FACTA Disposal Rule
any individual or entity that uses a consumer report, or information derived from a consumer report, for a business purpose to dispose of that consumer information in a way that prevents unauthorized access and misuse of the data
Violations to Fair and accurate credit transaction act
Civil liability as well as state and federal actions
Fair and accurate credit transaction act red flag rule
Requires certain financial entities to develop and implement written identity theft detection programs that can
identify and respond to “red flags” that signal identity theft
Fair and accurate credit transaction act red flag rule only applies to:
Financial institutions and creditors. Does not apply to credits who extend credit only expenses incidental to a service”
true/false: FCRA preempts stricter state laws for employment credit history checks
False. FCRA does not preempt stricter state laws for employment
credit history checks
State credit employment laws that have stricter laws than FCRA
California, Connecticut, Delaware, Hawaii, Illinois, Maryland, Nevada, Oregon, Vermont and Washington