Ch 6-(Test 3)-Fair Credit Reporting Act (FCRA)Exam Questions and Answers
4 views 0 purchase
Course
Ch 6--Fair Credit Reporting Act
Institution
Ch 6--Fair Credit Reporting Act
Ch 6-(Test 3)-Fair Credit Reporting Act (FCRA)
Under the FCRA credit bureaus are considered to be what? - Answer- consumer reporting agencies-those who use credit information and other information gathered by third parties to make important decisions
What are the 5 major provisions of the FCR...
Ch 6-(Test 3)-Fair Credit Reporting Act
(FCRA)
Under the FCRA credit bureaus are considered to be what? - Answer- consumer
reporting agencies-those who use credit information and other information gathered
by third parties to make important decisions
What are the 5 major provisions of the FCRA? - Answer- -Notice, authorization, &
certification procedures
-Address-checking procedures
-Adverse action procedures
-Disposal rules
-Furnisher rules
Background checks are considered to be ________ under the FCRA. - Answer-
consumer reports
Based in part on personal interviews that go beyond simply verifying facts that the
person has provided to the employers. - Answer- Investigative consumer report
What federal agency administers the FCRA? - Answer- Federal Trade Commission
(FTC)
Employers may request a consumer report on applicant or employee only for
______________ purposes. - Answer- employment
If an employer uses an outside agency to investigate an employee's suspected
violation of a law or regulation the investigation is excluded from the definition of
___________. - Answer- "consumer report" under the FCRA.
Why is the address-checking procedure required under the FCRA? - Answer- -An
employer that receives a notice of address discrepancy from a consumer reporting
agency after requesting a consumer report must take steps to verify the identity of
the subject of the report.
-it must follow reasonable procedures to determine that the report is actually about
the person on whom the employer requested the report
-means of verifying the identification of a person
What is the time limit imposed under the Disposal Rule? - Answer- does not impose
time limits for destroying consumer information
Why do employers need to retain consumer information on applicants and
employees? - Answer- its a self defense, to refute an employment discrimination
claim.
, If a current of former employee disputes the information an employer has
contributed, the employer must conduct a ________________. - Answer- reasonable
investigation
If an individual thinks the employer has violated the FCRA, the employee can sue
the employer in ___________. - Answer- federal district court
What is the statute of limitations in the above situation? - Answer- within 2 years of
the violation
Under what situation does the above not apply? - Answer- willful violation
The statute of limitations then becomes what? - Answer- 2 years after discovery of
false information
adverse action - Answer- any decision made by an employer for employment
purposes that negatively affects an employee or applicant
consumer report - Answer- written or oral information that (1) will be used for
employment purposes, (2) comes from a consumer reporting agency, and (3) relates
to a person's:
-creditworthiness
-credit standing
-credit capacity
-general reputation
-personal characteristics, or
-lifestyle
consumer reporting agency - Answer- person or an entity that regularly provides
consumer reports to third parties
employment purposes - Answer- to use information to decide whether to hire,
promote, reassign, or terminate someone
investigative consumer report - Answer- a consumer report based at least in part on
personal interviews that go beyond simply verifying facts that the person has
provided to the employer
furnisher - Answer- an entity provides info. relating to consumers to a consumer
reporting agency for inclusion in a consumer report
integrity - Answer- info. furnisher provides to consumer reporting agency about
someone is substantiated by the furnisher's records when it is provided, and is
provided in form and manner designed to minimize likelihood that info. may be
incorrectly reflected in a consumer report
Two goals of the FCRA: - Answer- -protect privacy of consumer credit information by
restricting access to those who have both a legitimate need for the information and
the consent of the person whose records are sought, and
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 or Stuvia-credit 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 $8.99. You're not tied to anything after your purchase.
