Exam (elaborations)
FACT Act Questions and Answers
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Exam of 5 pages for the course FCRA at FCRA (FACT Act)
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FACT ActProcedures to prevent re-circulation of blocked information include: - answer Notifying
the person who furnished the blocked information that it may be the result of identity
theft
A consumer reporting agency blocking any information from its report that is the result
of an alleged identity theft, if the consumer supplies certain information
According to the FACT Act amendments to the FCRA, when consumer reporting
agencies provide disclosures to the consumer as required under the FCRA, they must
also include: - answerA summary of the consumer's rights under the FCRA and some
other information intended to help the consumer enforce those rights
The FCRA requires that any user of a consumer report must have a legally permissible
purpose for using the report, such as: - answerAs a response to a federal grand jury
subpoena
Employment
Insurance
The FCRA states that a person, including a financial institution, has to specify an
address for receipt of notices from consumers concerning inaccurate information. -
answerF
If a consumer reporting agency is obligated to block information because of identity
theft, it is also obligated to send notice of the block and possible identity theft to the
person who furnished the information. - answerT
One of the goals of the FACT Act is to mitigate the consequences of identity theft. -
answerT
If an individual's credit score is affected because of the number of inquiries made, the
FACT Act requires that this must be reported to the consumer on the credit report. -
answerT
The federal financial institution regulatory agencies are directed to issue guidelines
about the _________ of the information that the institutions provide to consumer
reporting agencies: - answerAccuracy and integrity
An active duty alert is: - answerNotice included in a consumer report indicating that the
subject of the report is or was on active duty
, Under the FACT Act, hose who furnish information to consumer reporting agencies do
NOT need to: - answerProvide a consumer notice
The FACT Act has provisions that encourage lenders, for safety and soundness
reasons, to sell off debt that is the product of identity theft. - answerF
If a person who requests a consumer report receives notice from the consumer
reporting agency that there is a discrepancy between the consumer's address in the
request and the consumer's address in the consumer report, the lender: - answerMust
form a reasonable belief that a consumer report relates to the consumer in question
An institution can comply with the negative information notice requirement by providing
a notice to applicants, whether or not any actual negative information will be provided to
the nationwide consumer reporting agency. - answerT
If a lender receives a consumer report that contains a fraud alert, the lender: -
answerMust not extend the credit unless it believes it knows the identity of the person
requesting it
The best definition of identity theft is: - answerUsing identifying information about
someone else in order to perpetrate a fraud
When adverse action is taken based on any information contained in a consumer report,
the financial institution must provide the consumer with: - answer-written notice of the
adverse action to the consumer
The name, address, and telephone number of the consumer reporting agency from
which it received the information
-A statement that the consumer reporting agency did not make the decision to take the
adverse action
-A notice of the consumer's right to obtain a free copy of the consumer report from the
consumer reporting agency
A financial institution that furnished negative information about a consumer to a
nationwide consumer reporting agency: - answerMust provide the consumer with a
notice that the institution has furnished negative information
The goal of the FCRA is to ensure that lenders are treated fairly. - answerF
An "opt-out" is best defined as an opportunity for: - answerThe consumer to request that
information not be shared with affiliates
If a consumer reporting agency receives a request for a consumer report and the
address provided for the subject is different from the address in the report, the
consumer reporting agency: - answerMust report the discrepancy to the person
requesting the report
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