FCRA Basic Certification - Advanced (Version 1)
True/False: Resellers maintain their own database of information, which they combine with information from other CRA's - Answer- False
Which of the following is a reasonable procedure that a CRA could take to ensure that an end user has a permis...
FCRA Basic Certification - Advanced
(Version 1)
True/False: Resellers maintain their own database of information, which they
combine with information from other CRA's - Answer- False
Which of the following is a reasonable procedure that a CRA could take to ensure
that an end user has a permissible purpose to obtain consumer reports?
A. On site inspection of the end user's place of business
B. Checking the end user's references
C. the end user's business license and corporate formation documents.
D. All of Above
E. CRAs are not required to reasonably ensure that end users have a permissible
purpose. - Answer- D. All of Above
True/False: Consumers must provide consent to the preparation of an investigative
consumer report. - Answer- True
True/False: An "end user" is an entity that processes and reports information to an
employer or credit grantor. - Answer- False
Employers do not have to comply with the adverse action requirements if:
A. The criminal history disclosed on a consumer report would automatically disqualify
the job applicant from employment, e.g., a conviction for a violent crime like murder
or rape.
B. The job applicant is not a U.S. citizen.
C. The employer has U.S. operations, but is headquartered overseas.
D. It did not obtain a consumer report on the job applicant.
E. None of the above. - Answer- D. It did not obtain a consumer report on the job
applicant.
Consumers are permitted to dispute the "completeness or accuracy" of any
information in their file. In response, a CRA must do what?
A. Issue an immediate refund to the end user.
B. Notify the end user of the dispute within 24 hours.
C. Conduct a reasonable investigation to determine whether the disputed information
is accurate.
D. Request a copy of the pre-adverse action letter provided to the consumer. -
Answer- C. Conduct a reasonable investigation to determine whether the disputed
information is accurate.
True/False: Under the FCRA, resellers are not required to conduct traditional
reinvestigations in the event they become aware of a consumer dispute, but must
determine whether the alleged inaccuracy is their fault.
, Answer - Answer- True
If consumers want to dispute the accuracy of information contained in their consumer
report:
A. They can make the dispute with the CRA.
B. They must make the dispute with the end user and cannot make the dispute with
the CRA. - Answer- A. They can make the dispute with the CRA.
True/False: Some courts have held that employers must comply with the FCRA and
have a permissible purpose when they obtain background checks on independent
contractors - Answer- True
True/False: If a private investigator obtains information about a job applicant solely
by conducting telephone interviews with the applicant's friends, the resulting report is
an investigative consumer report. - Answer- True
In which of the following circumstances may a CRA report negative credit information
that is more than 7 years old?
A. Where a job applicant is expected to make more than $50,000 per year.
B. Where a consumer is applying for a $100,000 loan to by a Porsche.
C. Where a consumer is applying for a life insurance policy in the amount of
$500,000.
D. All of the above. - Answer- C. Where a consumer is applying for a life insurance
policy in the amount of $500,000.
True/False: Under the FCRA, consumer reports cannot include arrest data that is
older than seven (7) years. - Answer- True
Even though the FCRA is a federal statute, individuals can file FCRA lawsuits in
state courts
A. True, but only if they also assert a state law claim, like defamation.
B. True.
C. True, but only if a job applicant was applying for a job with a state government.
D. False. - Answer- B. True
True/False: A CRA is not required to comply with the FCRA if it only reports publicly-
available information, such as judgments and tax liens. - Answer- False
In the employment context, consumers have a right to all of the following except:
A. Authorization.
B. The price of the consumer report.
C. Adverse action protections.
D. Reasonable procedures/an accurate report.
E. Disclosures. - Answer- B. The price of the consumer report
Which of the following is NOT considered a CRA under the FCRA?
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Freshy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.49. You're not tied to anything after your purchase.
