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What is the main purpose of the Disposal Rule?

To mandate the donation of consumer information to non-profit organizations

To prevent unauthorized access and misuse of consumer information (correct)

To promote the sale and transfer of consumer data

To require organizations to dispose of consumer information in an environmentally friendly way

Which entities are required to comply with the Disposal Rule?

Neither small nor large organizations

Only small organizations like car dealers and attorneys

Only large organizations like consumer reporting agencies and lenders

Both small and large organizations including lenders, employers, landlords, and government agencies (correct)

What does the term 'disposal' include according to the Disposal Rule?

Only discarding

Only donation of information

Discarding, sale, or transfer of information (correct)

Abandonment and donation of information

Who took over rulemaking authority in the area related to consumer data in 2011?

The Consumer Financial Protection Bureau (CFPB) Signup and view all the answers

What is required of organizations under the Disposal Rule to protect consumer data?

'Reasonable' practices to safeguard against unauthorized access or use of consumer data Signup and view all the answers

What is required by law if a person denies credit based on information not from a CRA?

Disclose the nature of the information relied upon upon request Signup and view all the answers

If an adverse action involving insurance is taken based on FCRA-covered information from an affiliated entity, what must the user do?

Notify the consumer of the adverse action and provide nature of info disclosure option Signup and view all the answers

What is a requirement if a person increases charges for a credit transaction not based on CRA information?

Inform the consumer of their right to request disclosure of relied-upon info Signup and view all the answers

If an adverse employment action is taken due to FCRA-covered information from an affiliate, what must be done?

Notify the employee of adverse action and disclose relied-upon info option Signup and view all the answers

In what timeframe must the user provide disclosure of relied-upon information if requested by the consumer?

Within a reasonable period following written request Signup and view all the answers

Which of the following statements about prescreened lists under the FCRA is correct?

Prescreened lists can only be used by creditors and insurers for unsolicited offers of credit or insurance. Signup and view all the answers

Based on the information provided, which of the following statements about the use of prescreened lists is true?

The criteria used for prescreening must be established before the offer is made and maintained for 3 years. Signup and view all the answers

Which of the following statements about the disclosure requirement for written solicitations using prescreened lists is correct?

The disclosure must be included in a clear and conspicuous statement with each written solicitation. Signup and view all the answers

Which of the following is NOT a requirement for using prescreened lists under the FCRA?

Obtaining explicit consent from consumers before using prescreened lists. Signup and view all the answers

Based on the information provided, which of the following statements about the use of prescreened lists is false?

Users of prescreened lists are required to obtain consumer consent before using the lists. Signup and view all the answers

What is required under the FCRA when a furnisher receives a report from a CRA related to information resulting from identity theft?

The furnisher must have procedures in place to respond to the report Signup and view all the answers

According to the Risk-Based Pricing Rule, what are lenders required to do if they offer less favorable terms to a borrower based on their credit report?

Notify the borrower that they are receiving less favorable terms due to their credit report Signup and view all the answers

Under the FCRA, which entities are required to provide disclosure when they use credit scores in making or arranging loans secured by residential real property?

All persons who use credit scores for this purpose Signup and view all the answers

If a furnisher is required to provide notice of a dispute to CRAs under the FCRA, what must the furnisher do?

Notify the CRAs that a dispute has been received Signup and view all the answers

Which of the following activities requires special disclosures under the FCRA?

Both A and B Signup and view all the answers