Fair Credit Reporting Act Quiz

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Questions and Answers

What is one right consumers have under the Fair Credit Reporting Act regarding adverse actions taken against them?

They must be informed of the reasons for any increase in credit limits.

They can request a raise in their credit score within 30 days.

They can automatically receive a credit card offer upon application.

They must be notified if their information has been used against them and given details about the reporting agency. (correct)

Under what circumstance are consumers entitled to a free file disclosure from a consumer reporting agency?

If they have never received a credit report before.

If they lost their job due to company downsizing.

If they apply for a new credit card once every month.

If they were denied credit due to the information in their report. (correct)

What identification might be required to obtain a file disclosure from a consumer reporting agency?

A recent utility bill.

A Social Security number or similar identification. (correct)

A valid driver's license only.

Proof of employment.

How often can consumers request a free disclosure from each nationwide credit bureau?

Once every 12 months upon request. Signup and view all the answers

Which of the following situations qualifies a consumer for a free file disclosure?

If they report identity theft and place a fraud alert in their file. Signup and view all the answers

What is a credit score primarily based on?

Numerical summaries of consumer's credit-worthiness from credit bureaus. Signup and view all the answers

What must someone do if they wish to dispute inaccurate information in their file?

They need to provide evidence of the inaccuracies to the consumer reporting agency. Signup and view all the answers

Which of these is NOT considered a type of consumer reporting agency?

Data analytics companies. Signup and view all the answers

What is the primary purpose of placing a security freeze on a credit report?

To prevent unauthorized access to personal information. Signup and view all the answers

What is a potential consequence of implementing a security freeze?

It may delay the approval of future credit requests. Signup and view all the answers

How long does an initial fraud alert last on a credit file?

1 year Signup and view all the answers

In which scenario can a collection agency access a credit report despite a security freeze?

When the agency is collecting a debt on an existing account. Signup and view all the answers

What action can a consumer take if they believe their FCRA rights have been violated?

Sue in state or federal court for damages. Signup and view all the answers

Which agency is responsible for consumer protection related to banks and credit unions with total assets exceeding $10 billion?

Consumer Financial Protection Bureau Signup and view all the answers

Who is allowed to place an extended fraud alert lasting 7 years?

Victims of identity theft only. Signup and view all the answers

Where should you direct your inquiries about national banks and federal savings associations?

Office of the Comptroller of the Currency Signup and view all the answers

Which of the following statements about a security freeze is true?

You can place it without any cost. Signup and view all the answers

What is the contact method for the FDIC Consumer Response Center?

Telephone and mail Signup and view all the answers

Which of the following agencies deals specifically with consumer responses for the Federal Trade Commission?

Federal Trade Commission Consumer Response Center Signup and view all the answers

What is required of businesses when a fraud alert is placed on a consumer's credit file?

They must take additional steps to verify the consumer's identity. Signup and view all the answers

Which option includes a category not covered by item 1 regarding financial institutions?

Commercial check-cashing services Signup and view all the answers

What must a consumer reporting agency do if a consumer disputes inaccurate information?

The agency must investigate unless the dispute is deemed frivolous. Signup and view all the answers

How long can negative information typically be reported by a consumer reporting agency?

Ten years for bankruptcies and seven years for other negative information. Signup and view all the answers

Which entity can be contacted for concerns regarding Insured State Branches of Foreign Banks?

FDIC Consumer Response Center Signup and view all the answers

What is the main purpose of the Federal Reserve Consumer Help Center?

To assist with consumer issues related to depository institutions Signup and view all the answers

In what situation can a consumer reporting agency provide information about a consumer to an employer?

With the consumer's written consent. Signup and view all the answers

Which of the following is NOT a direct responsibility of the Consumer Financial Protection Bureau?

Conducting audits of state banks Signup and view all the answers

What rights does a consumer have regarding prescreened offers of credit and insurance?

Consumers may opt out using a toll-free number. Signup and view all the answers

What is the time frame within which consumer reporting agencies must correct or delete inaccurate information?

30 days from identification of the inaccuracy. Signup and view all the answers

What requirement must be met for a consumer reporting agency to provide information to a creditor?

The creditor should have a valid need for the information. Signup and view all the answers

What happens if a consumer identifies unverifiable information in their credit report?

The agency must correct or delete the information. Signup and view all the answers

What is required for consumers who want to challenge their credit report information?

They must provide proof that the information is incorrect. Signup and view all the answers

What is the primary function of the National Credit Union Administration?

Overseeing consumer compliance policies Signup and view all the answers

Which department oversees the Aviation Consumer Protection Division?

Department of Transportation Signup and view all the answers

Who is the primary point of contact for creditors subject to the Surface Transportation Board?

Office of Proceedings Signup and view all the answers

Which of the following is overseen by the Packers and Stockyards Administration?

Certain creditor organizations Signup and view all the answers

What role does the Associate Deputy Administrator for Capital Access serve in regards to Small Business Investment Companies?

Oversees capital access programs Signup and view all the answers

Which agency regulates brokers and dealers in securities?

Securities and Exchange Commission Signup and view all the answers

How many federal agencies are mentioned in relation to banking and consumer finance oversight?

Six Signup and view all the answers

Which location is associated with the Federal Intermediate Credit Banks?

1501 Farm Credit Drive Signup and view all the answers

Study Notes

Fair Credit Reporting Act (FCRA)

The FCRA promotes accuracy, fairness, and privacy of consumer information
Consumer reporting agencies: include credit bureaus and specialty agencies (check writing histories, medical records, rental history)
Adverse Action: If a credit report is used to deny credit, insurance, or employment, you must be notified and given information about the agency that provided the report
Access to Your File: You can obtain a free file disclosure once a year
Free File Disclosure Eligibility:
- If you have been denied credit, insurance, or employment based on your credit report
- Identity theft victim with a fraud alert
- File contains inaccurate information due to fraud
- Public assistance recipient
- Unemployed but expect to apply for employment within 60 days
Credit Score: You can request your credit score from consumer reporting agencies for a fee; Some mortgage lenders may provide it for free
Dispute Incomplete or Inaccurate Information: You have the right to dispute information in your file; The reporting agency must investigate unless the dispute is frivolous
Outdated Information: Agencies may not report negative information that is more than seven years old, or bankruptcies that are more than 10 years old
Limited Access to Your File: Information can only be provided to people with a valid need (creditors, insurers, employers, landlords, etc.)
Employer Access: Reporting agencies require your written consent to provide information to employers.
Prescreened Offers: You can opt out of "prescreened" offers of credit and insurance by calling a toll-free number
Security Freeze: You have the right to place a security freeze on your credit report, which prevents information release without your authorization
Fraud Alert: You can place an initial (1 year) fraud alert or an extended (7 years) fraud alert on your file
Damages: You may sue if a reporting agency or user of consumer reports violates the FCRA
Additional Rights: Identity theft victims and active duty military personnel have additional rights
States' Rights: States may enforce the FCRA and have their own consumer reporting laws
Contact Information: The document provides contact information for various agencies and federal bodies related to consumer protection, including the Consumer Financial Protection Bureau (CFPB), Federal Trade Commission (FTC), Office of the Comptroller of the Currency, etc.

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Description

Test your knowledge of the Fair Credit Reporting Act (FCRA) and its provisions. This quiz covers essential aspects such as consumer reporting agencies, adverse actions, and your rights to access credit information. Learn about what you can do to protect your financial information and ensure accuracy in your reports.