CR4 - FAIR CREDIT
REPORTING ACT
(2024) EXAM
QUESTIONS WITH
PASSED SOLUTIONS!!
FCRA
Evatee 10/15/24 FCRA
,CR4 - FAIR CREDIT REPORTING ACT (2024)
EXAM QUESTIONS WITH PASSED
SOLUTIONS!!
1. Lana, a new lender at Loan Star Bank, is taking compliance training. What
would Lana have learned about risk-based pricing notices in her Fair Credit
Reporting Act (FCRA) training?
A. Risk-based pricing notices must be provided to business customers
B. Risk-based pricing notices must be provided if, after conducting a periodic
review of a consumer's credit, a lender decreases a customer's annual
percentage rate based on information in a consumer report
C. A lender must provide a risk-based pricing notice when, based on the
consumer's credit report, the creditor provides credit to the consumer on
materially less favorable terms than it provides to other consumers
D. A risk-based pricing notice must be provided even when the lender
approves the loan on the terms requested by the consumer Answer - C
3D905EB356FB48CBADABC7D80365B981
Not answered. The correct answer is c. A is incorrect because only consumers
must receive risk based pricing notices. B is incorrect because risk based pricing
notices must be provided when a lender increases a consumer's rate based on
a credit report. D is incorrect because a risk-based pricing notice is not required
when the lender approves a loan on the terms requested by the consumer.
2. During the course of your day you accomplish two tasks: (1) you call a credit
officer at an affiliate, Reliable Card Services, and describe general information
contained in a consumer report for a particular customer (the customer was
not given the opportunity to opt-out) and, (2) you respond to a call from a loan
officer at your affiliated mortgage company and describe your bank's
experience with a borrower. Which statement is true regarding these tasks?
, A. Neither task violates the FCRA
B. Only task 1 violates the FCRA
C. Only task 2 violates the FCRA
D. Both tasks violate the FCRA Answer - B
A2F5CD20648C48EB9CF245ABCF03B6FF
Not answered. The correct answer is b. A is incorrect because one of the tasks,
task 1, violates the FCRA because it involves the sharing of 3rd party
information with an affiliate without providing an opt out. C is incorrect
because the sharing of transactional information with affiliated parties is not a
consumer report and is permitted under the FCRA. D is incorrect because only
one of the tasks is considered to be a violation of the FCRA.
3. If a bank declines an application for credit based on a consumer report and
credit score, then which statement best describes its responsibility to the
applicant?
A. Send an adverse action notice that only states the reasons the credit was
denied
B. Send a notice that explains only that a credit report was used
C. Send an adverse action notice that gives only a summary of the negative
credit on the report
D. Send an adverse action notice that states the reasons the credit was denied,
explains that a credit report was used, provides the credit score and reasons
for the score and also gives the name, address, and phone number of the credit
reporting agency Answer - D
A900715F4A9D407F8132982FB45C0B42
Not answered. The correct answer is d. A, B, and C are incorrect because they
do not provide the required amount of detail.
4. National Bank's marketing department plans to share third party information
with its mortgage and brokerage affiliates. What does the Fair Credit Reporting
Act (FCRA) require National to do before sharing the information?
REPORTING ACT
(2024) EXAM
QUESTIONS WITH
PASSED SOLUTIONS!!
FCRA
Evatee 10/15/24 FCRA
,CR4 - FAIR CREDIT REPORTING ACT (2024)
EXAM QUESTIONS WITH PASSED
SOLUTIONS!!
1. Lana, a new lender at Loan Star Bank, is taking compliance training. What
would Lana have learned about risk-based pricing notices in her Fair Credit
Reporting Act (FCRA) training?
A. Risk-based pricing notices must be provided to business customers
B. Risk-based pricing notices must be provided if, after conducting a periodic
review of a consumer's credit, a lender decreases a customer's annual
percentage rate based on information in a consumer report
C. A lender must provide a risk-based pricing notice when, based on the
consumer's credit report, the creditor provides credit to the consumer on
materially less favorable terms than it provides to other consumers
D. A risk-based pricing notice must be provided even when the lender
approves the loan on the terms requested by the consumer Answer - C
3D905EB356FB48CBADABC7D80365B981
Not answered. The correct answer is c. A is incorrect because only consumers
must receive risk based pricing notices. B is incorrect because risk based pricing
notices must be provided when a lender increases a consumer's rate based on
a credit report. D is incorrect because a risk-based pricing notice is not required
when the lender approves a loan on the terms requested by the consumer.
2. During the course of your day you accomplish two tasks: (1) you call a credit
officer at an affiliate, Reliable Card Services, and describe general information
contained in a consumer report for a particular customer (the customer was
not given the opportunity to opt-out) and, (2) you respond to a call from a loan
officer at your affiliated mortgage company and describe your bank's
experience with a borrower. Which statement is true regarding these tasks?
, A. Neither task violates the FCRA
B. Only task 1 violates the FCRA
C. Only task 2 violates the FCRA
D. Both tasks violate the FCRA Answer - B
A2F5CD20648C48EB9CF245ABCF03B6FF
Not answered. The correct answer is b. A is incorrect because one of the tasks,
task 1, violates the FCRA because it involves the sharing of 3rd party
information with an affiliate without providing an opt out. C is incorrect
because the sharing of transactional information with affiliated parties is not a
consumer report and is permitted under the FCRA. D is incorrect because only
one of the tasks is considered to be a violation of the FCRA.
3. If a bank declines an application for credit based on a consumer report and
credit score, then which statement best describes its responsibility to the
applicant?
A. Send an adverse action notice that only states the reasons the credit was
denied
B. Send a notice that explains only that a credit report was used
C. Send an adverse action notice that gives only a summary of the negative
credit on the report
D. Send an adverse action notice that states the reasons the credit was denied,
explains that a credit report was used, provides the credit score and reasons
for the score and also gives the name, address, and phone number of the credit
reporting agency Answer - D
A900715F4A9D407F8132982FB45C0B42
Not answered. The correct answer is d. A, B, and C are incorrect because they
do not provide the required amount of detail.
4. National Bank's marketing department plans to share third party information
with its mortgage and brokerage affiliates. What does the Fair Credit Reporting
Act (FCRA) require National to do before sharing the information?
