FCRA NMLS- EXAM QUESTIONS AND 100%
VERIFIED ANSWERS
What is the Fair Credit Reporting Act?
A law enacted to ensure accuracy, fairness, and privacy of consumers' personal information.
Who enforces compliance with FCRA?
The CFPB (Consumer Financial Protection Bureau).
What is the role of the FTC in relation to FCRA?
The FTC (Federal Trade Commission) retains some rulemaking and enforcement authority.
What are the regulations promulgated pursuant to FCRA called?
Regulation V.
What is the purpose of Appendix M in the regulations?
It provides model forms for the notices and disclosures required by FCRA.
What types of transactions does FCRA apply to?
Transactions involving credit reports, consumer investigatory reports, and employment
background checks.
Are there any exceptions to the privacy requirements of FCRA?
Limited information disclosures to government agencies, the FBI, and counter-terrorism
investigations are exempt.
What is the definition of a consumer report?
The communication of any information from a consumer reporting agency that relates to a
consumer's credit worthiness, standing, capacity, character, personal characteristics, or mode of
living.
What is the definition of a consumer reporting agency (CRA)?
Any person who regularly engages in providing consumer reports for fees or on a regular basis.
, What is the definition of a furnisher?
A person or entity that provides information to a consumer reporting agency.
What is the definition of a user?
A person or entity that uses a consumer report for credit, insurance, employment, or other
permissible purposes.
What is the definition of a consumer?
An individual who is the subject of a consumer report.
What is the definition of a credit report?
A report containing information about an individual's credit history and creditworthiness.
What is the definition of a consumer investigatory report?
A report containing information about an individual's character, reputation, personal
characteristics, or mode of living.
What is the definition of a covered transaction?
Any transaction that involves the use of credit reports, consumer investigatory reports, or
employment background checks.
What is the purpose of FCRA?
To ensure accuracy, fairness, and privacy of consumers' personal information.
What are the obligations and restrictions for CRAs under FCRA?
To protect the rights of consumers and ensure accuracy, fairness, and privacy of their personal
information.
What are the obligations and restrictions for furnishers under FCRA?
To provide accurate and complete information to consumer reporting agencies.
What are the obligations and restrictions for users under FCRA?
To use consumer reports only for permissible purposes and to comply with FCRA requirements.
VERIFIED ANSWERS
What is the Fair Credit Reporting Act?
A law enacted to ensure accuracy, fairness, and privacy of consumers' personal information.
Who enforces compliance with FCRA?
The CFPB (Consumer Financial Protection Bureau).
What is the role of the FTC in relation to FCRA?
The FTC (Federal Trade Commission) retains some rulemaking and enforcement authority.
What are the regulations promulgated pursuant to FCRA called?
Regulation V.
What is the purpose of Appendix M in the regulations?
It provides model forms for the notices and disclosures required by FCRA.
What types of transactions does FCRA apply to?
Transactions involving credit reports, consumer investigatory reports, and employment
background checks.
Are there any exceptions to the privacy requirements of FCRA?
Limited information disclosures to government agencies, the FBI, and counter-terrorism
investigations are exempt.
What is the definition of a consumer report?
The communication of any information from a consumer reporting agency that relates to a
consumer's credit worthiness, standing, capacity, character, personal characteristics, or mode of
living.
What is the definition of a consumer reporting agency (CRA)?
Any person who regularly engages in providing consumer reports for fees or on a regular basis.
, What is the definition of a furnisher?
A person or entity that provides information to a consumer reporting agency.
What is the definition of a user?
A person or entity that uses a consumer report for credit, insurance, employment, or other
permissible purposes.
What is the definition of a consumer?
An individual who is the subject of a consumer report.
What is the definition of a credit report?
A report containing information about an individual's credit history and creditworthiness.
What is the definition of a consumer investigatory report?
A report containing information about an individual's character, reputation, personal
characteristics, or mode of living.
What is the definition of a covered transaction?
Any transaction that involves the use of credit reports, consumer investigatory reports, or
employment background checks.
What is the purpose of FCRA?
To ensure accuracy, fairness, and privacy of consumers' personal information.
What are the obligations and restrictions for CRAs under FCRA?
To protect the rights of consumers and ensure accuracy, fairness, and privacy of their personal
information.
What are the obligations and restrictions for furnishers under FCRA?
To provide accurate and complete information to consumer reporting agencies.
What are the obligations and restrictions for users under FCRA?
To use consumer reports only for permissible purposes and to comply with FCRA requirements.
