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Flashcards in Financial Privacy Deck (6)
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What is the FCRA?

The Fair Credit and Reporting Act. It mandates that accurate and relevant data collection, provides consumers with the ability to access and correct their information, and limits the use of consumer reports to defined permissible purposes.


Who does the FCRA regulate?

Any consumer reporting agency (CRA) that furnishes a consumer report.


Who is a CRA?

Any person or entity that compiles or evaluates personal information for the purpose of furnishing consumer reports to 3rd parties for a fee.


What is a consumer report?

Any communication by a CRA related to an individual that pertains to the person's:
- Creditworthiness
- Credit Standing
- Credit Capacity
- Character
- General Reputation
- Personal characteristics
- Mode of living
and that is used as a factor in establishing a consumer's eligibility for credit, insurance, employment or other business purpose.


What are the 4 main requirements under the FCRA that users of consumer reports must meet?

1. Third party data for substantive decision making must be appropriately accurate, current and complete
2. Consumers must receive notice when third-party data is used to make adverse decisions about them
3. Consumer reports may be used only for permissible purposes
4. Consumers must have access to their consumer reports and an opportunity to dispute them or correct any errors.


What obligations are CRAs required to provide notice of to users of consumer reports?

1. Users must have a permissible purpose.
2. Users must provide certifications.
3. Users must notify consumers when adverse actions are taken.