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Additional CRCM > Fair Credit Reporting Act > Flashcards

Fair Credit Reporting Act Flashcards

(95 cards)

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1
Q

A consumer report is what?

A

Written or Oral communication bearing an individual creditworthiness or reputation

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2
Q

Consumer reports are covered under FCRA when it is used to establish

A

Credit for personal reasons

Employment purposes

Any other authorized purpose

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3
Q

Consumer report does not include

A

A transaction report only

A experience report

Information between affiliates

An investigative report for a prospective employer

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4
Q

What must a consumer reporting agency do with obsolete information

A

Purge it

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5
Q

What is the maximum a consumer reporting agency can report negative information

A

7 years

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6
Q

What is the maximum years a consumer reporting agency can report bankruptcies

A

10 years unless the information is related to credit insurance for $150k or more

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7
Q

What are permissible purposes for furnishing a credit report

A

Authorization from customer in writing

Court order

Insurance transaction

Employment purposes

Legitimate business need

To obtain prescreened consumer info

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8
Q

If a credit report is pulled for employment purposes the employer must at first.

A

Disclose to the individual in writing a consumer report may be obtained

Must obtain written authorization from the consumer

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9
Q

The requirements for user of consumer reports are

A

Give an oral or written communication when consumer report information leads to

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10
Q

What are the four things to be considered a legitimate business need

A

Connection with a business transaction initiated by consumer

For use by potential investors

To determine if consumer still qualifies for terms

If the consumer is liable for a business debt

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11
Q

Adverse actions include denial of

A

Credit

Insurance

Checking account

Renewal of insurance or credit

Employment

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12
Q

If information from a credit report was used to make the adverse decision, the user must disclose what to the customer

A

The.
Name
Address
And a 800 telephone number of the credit reporting agency

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13
Q

When the consumer is made aware of the name, address, and consumer reporting agency that provided the report that caused the adverse action what else must be disclosed

A

A statement the consumer reporting agency did. It make the decision

Let the consumer know they can obtain a free copy of the credit report in 60 days

Let the consumer know they can dispute the accuracy and completeness of the report

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14
Q

If information form a third party is used to make the adverse decision, the user must

A

Notify the consumer of the action

Let consumer know they can see what he information if requested within 60 days

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15
Q

Creditors of consumer reports may also use information if a transaction was not initiated by the consumer if

A

The information is limited to name, address, and a unique credit identifier

The user let’s the consumer know information from a credit report was used in connection with the transaction

The consumer received the offer because they met the criteria

The offer can not be extended if consumer fails to meet initial criteria or does not furnish requir d collateral

Has the right to opt out of prescreened offers

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16
Q

If an enity made a solicitation offer how long must the file be maintained on file showing the criteria used to select the consumer

A

3 years after the offer is made

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17
Q

If an employer uses a report in whole or part to take an adverse action, the must provide the consumer with

A

A copy of the report

A description of the consumer rights under FCRA

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18
Q

Users must implement procedures to allow them at the time they receive a notice of address discrepancy to

A

Form a reasonable belief that the consumer making the request is the right consumer

They can verify this by

Verifying consumer information with third party or consumer

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19
Q

When a user receives a notice of address discrepancy they should have policies to ensure that the credit reporting agency receives

A

The correct address going forward

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20
Q

What is a covered account

A

Accounts that involve continuing relationships establishes for personal that permit multiple payments or transactions

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21
Q

Should an institution perform risk assessments to determine whether they offer or maintain covered accounts

A

Yes. They should take into consideration
Methods used to open account
Methods provided to access accounts
Previous experience with identity theft

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22
Q

Institutions with covered accounts should establish an identity theft program that can

A

Detect
Prevent
Mitigate
The Identity theft with opening and closing of a covered account

The program must be appropriate to the size and complexity of the bank

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23
Q

Elements of an identity theft program include

A

Identification of relevant red flags

Respond appropriately to red flags

Ensure program is updated periodically

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24
Q

Administration of the identity theft program includes

A

Approval from the board
Involve a board member in the implementation of the plan
Regularly train staff
Exercise program oversight of service providers

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25
Card issuers must implement what
Reasonable policies to assess the validity of address changes
26
If a address change or card replacement request is received in less than ____ days then what type of validation should occur
Address
27
Any communication with the card holder regarding a address validation should be mailed how
Seperatly from regular correspondence.
28
A risk basked pricing notice is required when
If you used a credit report to make a decision You grant different terms based on the strength of the consumer
29
What type of credit is excluded from risk based pricing
Business
30
When must a risked basked pricing notice be provided to the consumer
When the offered terms are less favorable than what is overed to other consumers
31
Some material risk basked pricing terms used to make direct comparisons of terms of credit
Apr For a credit with no apr. fee or required deposit
32
Creditors can use the score proxy alternative to make direct comparisons for identitying consumers being awarded less favorable credit. Methods include
A cut off score
33
Ways used inDetermining the cutoff for the credit score proxy are
Sampling approach Acquiring a portfolio - using their cut off score Recalculating cutoff scores - every two years Secondary source - I.e market research Using two or more scores No credit score available- automatically receive less favorable terms
34
Lenders that set material terms of credit by placing consumers within discrete pricing tiers based on the consumer credit report must provide what to all consumers who are not in the top tier or tiers
Risk based pricing notice If 4 tiers - all except top tier would get notice If 5 or more tiers - all except top two tiers would get notice
35
What must be provided when a lender uses a consumer report in a review of an existing account and increases the APR
A risk based pricing notice
36
What are general contents of a general risk based pricing notice
Includes information about credit history Terms are based on credit report information Terms may be less favorable Consumer has right to verify accuracy Credit reporting agency that sent the information You have 60 days to request a copy How to obtain a credit report You can go to FTC site for more info
37
Risk based pricing notice for an account review when the rate changes should include
Consumer report includes info about your credit history We conducted a review of you account Your APR has been increased You have right to verify Who furnished the credit report How to obtain a credit report
38
Risk based pricing notices should be —
Clear and conspicuous Oral, written.’, electronic
39
For closed end loans, risk based pricing notices must be provided before
Consumption
40
For open end loans, risk based pricing notice should be provided before
First tranamsaction
41
For review accounts, the risk based pricing notice should be given
At the time the decision is made to raise the APR
42
For automobile loans the risk based pricing notice can be given
By the lender as long as they the bank makes sure the lender has a process to make sure the borrower receives it on time
43
For risk based pricing with multiple scores, the notice includes information on the credit score that was used to make
The decision
44
If risk based pricing averaged two scores, notice should include
Information on at least one of them
45
If multiple consumers, a risk based pricing notice should be provided to
Each
46
If risk based pricing notice is not required
A consumer Gets the credit that they requested on the terms they wanted A consumer that received a adverse action Consumer was part of a prescreened solicitation Extension of credit for a one to four family residence
47
Account review notices for single family residences include
Includes info about credit report Score takes into account credit history Score can determine it credit is granted For fcra purposes, the score obtained, the factors behind the score, copy of the notice of the home loan applicant Bar graph showing distribution of scores You can verify information You can request a copy without charge Go to CFPBb website for more info
48
Closed end account review risk based pricing notices must be
Clear and conspicuous Provided with other FCRA notice information Segregated from other information Provided in writing in a form the consumer can keep
49
A risk based pricing notice does not have to be provided if
It is a non residential property loan The person does not have a credit score
50
How many notices are required to be provided to a consumer per credit extension
1
51
If multiple consumers, does each one receive a risk based pricing notice
Yes, that contains only their score. Even if the consumers have the same address If the notice does not contain the score the a single notice can be sent when addressed to the same address
52
Banks must properly dispose of any consumer information they maintain or other wise process in accordance with
Interagency guidelines for establishing information security standards
53
Credit information providers must furnish information nuthatch is
Accurate
54
Can a furnished report information they know is inaccurate if the consumer notified them
No
55
If an information provider determines that it has made an inaccurate report it must
Promptly correct and update the information
56
If a consumer disputes information that has been reported, the furnished must
Also include a notification that the consumer disputes the accuracy of the information
57
If after investigation any item on a report is found to be inaccurate, incomplete, or unverifiable the consumer reporting agency must
Promptly modify the information Promptly notify the furnished that the information has been modified
58
After receiving notice of dispute from a consumer reporting agency the provider must
Conduct a complete investigation Review all relevant information report the results of the investigation to all consumer reporting agencies
59
If a consumer notifies a furnisher that information its maintaining results from identity theft, and submits an identity theft report, the furnisher may not
Furnish such information to consumer reporting agency unless it knows or is informed by the consumer that the information is correct
60
How long can the put a fraud alert on their credit report
90 day
61
If the consumer specifies a telephone number on a fraud report
The user of that report must contact the consumer at number or take reasonable steps to verify the consumer identity
62
Consumer reporting agencies must include extended fraud alerts if the consumer provided what
Identity theft report such as a police report
63
If a consumer reporting agency receives an active duty alert
It must put an alert on the consumer file for 12 months
64
Reasonable procedures for proof of identify proof of identity for consumer reporting include
Ensure information is sufficient to allow a match Be able readily to adjust information
65
For prescient notices the bank must provide
A short and a long form prescreen notice
66
What must the short form notice contain
Clear and conspicuous You can opt out if you call this 1-800 number Go see the long notice Not less than 12 don’t Front page of solicitation
67
The long prescient notice must be
Say required by FACT act Must be in solicitation Don’t no smaller than 8 Must say in all caps. Prescreen and opt out notice
68
If an institution wants to use information from an affiliate the
Consumer has to be made aware in writing The consumer if given a chance to opt out The consumer did not opt out
69
A bank is considered to have received solicitation maerketing information from an affiliate of
It used it to determine who to send the solicitation to Uses it to establish the criteria on who to select Decide what products or services to sell them
70
Opt out rules do not apply if
There is a pre existing relationship Bank supplies employee benefits to the person The bank is performing services on behalf of affiliate The bank is reacting to a consumer initiated request
71
A consumer opt out must be effective for how long
5 Year’s from when the consumer notice is received
72
If joint relationships, how many opt out notices should be sent
One
73
Content of opt out notices include
Clear, conspicuous, and concise Name of affiliate Describe type of eligibility information being used Let the consumer know they do not have to renew the notice
74
Can opt out notices be consolidated with other notices
Yes
75
Means of opting out
Check boxes Self addressed envelope Electronic means To free number
76
After an opt out expires the consumer must receive what first before he can receive solicitations again
A renewal notice and it must be provided by the affiliate that provided the original notice
77
How soon should the renewal opt out notice be sent
A reasonable time before the expiration of the original opt out notice
78
What are the consumer credit report seven characteristics
``` Creditworthiness Credit standing Credit capacity Character General Reputatiin Personal Characteristics Mode of living ```
79
What is not a credit report
Transaction and experience info Reporting credit to a third party at the consumers request Communication to Affliates if transactions and experience, notice of sharing to opt out
80
Consumer Reports must include
Credit score and key factors Account disputed by consumer Notice of address discrepancy Notice of Fraud alerts Account closed by the consumer
81
Medical information is
Physical, mental, or behavioral health condition The proviso of healthcare The payment of healthcare
82
Consumer reports may not furnish medical information unless
Written consumer consent The information is limited to account status
83
With medical information, creditors may not
Share medical information for other than what is provided Obtain or use medical information to determine credit Now debt can be considered like other debt. However reason for medical treatment can’t
84
What is permissible purpose
CRAs may release consumer reports in limited circumstances Credit or insurance applications or account reviews Pre screed marketing Written consent Court order Employment Due diligence Legitimate Business Need
85
For prescreend offers the CRA must have
Consumer authorization
86
What must the prescreened offer be
A firm offer of credit and must provide an opt out method
87
For prescreen offers CRAs should only provide infomation to
Facilitate the creditor reaching the consumer to make the firm offer The CRA may not identify specific relationships or experiences with other creditors
88
Information furnished to CRAs must be ————- and full of ——
Accurate and integrity
89
Accurate means the credit report must correctly
Identify the appropriate consumer Reflect terms and liability of the account Reflect consumer performance
90
Integrity of information furnished about an account should be
Substantisted by the furnisher records Designed to minimize likelihood that information may be incorrectly reflected in a consumer report Includes information in furnisher’s possessiin CRA determines relevant
91
Furnishers must have what type of policies in place
Reasonable written procedures regarding the accuracy and integrity of the information it furnishes to CRAs Appropriate to size of furnisher activities Incorporate guidelines Reviewed periodically
92
Consumers may contact the acRA to dispute information but must
Identify the information disputed Explain the dispute Provide supporting documentation
93
CRA has how long to investigate a dispute
30 days or 45 if the consumer provides more information
94
For a dispute of information with consumer report the CRA has how many days to notify the furnisher
5
95
Exceptions to dispute within consumer reports
Identifying information Identity of past or or present employers Inquiries Information related to alerts Who provided information Credit repair organization

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