FCRA STUDY GUIDE EXAM QUESTIONS AND 100% VERIFIED ANSWERS

FCRA STUDY GUIDE EXAM QUESTIONS
AND 100% VERIFIED ANSWERS
FCRA substantially covers:

Banks acting as Consumer Reporting Agencies.

FCRA requirements ALSO apply to Banks that Operate in the Following Capacities:

(1) Obtaining and users of Information (Example: Credit grantors, purchasers of dealer paper,
or when opening deposit accounts);


(2) Furnishers and Transmitters of Information (by reporting information to consumer
reporting agencies or other 3rd parties or affiliates);


(3) Marketers of credit or insurance products; OR


(4) Employers

Banks ARE NOT SUBJECT to:

A number of different requirements under FCRA. (because most banks are not Consumer
Reporting Agencies)

Consumer under FCRA is:

An individual.

Consumer Report:

Any Written, Oral, or Other Communication of ANY INFORMATION by a Consumer
Reporting Agency that bears on a consumer's:
- Creditworthiness;
- Credit Standing;
- Credit Capacity;
- Character;
- General Reputation;

,- Personal Characteristics; or
- Mode of Living.

Person under FCRA is:

Any individual, partnership, corporation trust, estate, cooperative, association, government or
governmental subdivision or agency, or other entity.

Adverse Action:

Has the same meaning as ECOA.


- Denial or Revocation of credit,


- Change in Terms of an Existing Credit Arrangement, or


- Refusal to grant credit in substantially the same amount or on terms substantially similar to
those requested.


(Does not Include refusal to extend additional credit under an existing credit arrangement
where the applicant is delinquent or otherwise in default, or where additional credit would
exceed a previously established credit limit.)

Under FCRA adverse action means:

(1) A denial or cancellation of, an increase in any charge for, or a reduction or other adverse or
unfavorable change in the terms of coverage or amount of, any insurance, existing or applied for,
in connection with the underwriting of insurance;


(2) Denial of employment or any other decision for employment purposes that adversely affects
any current or prospective employee;


(3) Denial or cancellation of, an increase in any charge for, or any other adverse or unfavorable
change in the terms of, any license or benefit;

,(4) Action taken or determination that is:


- Made in connection with an application made by, or transaction initiated by, any consumer, or
in connection with a review of an account to determine whether the consumer continues to meet
the terms of the account; AND


- Adverse to the interests of the consumer.

Consumer Reporting Agency:

Any Person which, FOR MONETARY FEES, DUES, or on a COOPERATIVE Non-Profit
Basis, Regularly Engages in whole or in part in the practice of assembling or evaluating
consumer credit information or other information on consumers for purposes of furnishing
CONSUMER REPORTS to 3rd Parties; AND


- Which uses any means or facility of interstate commerce for the purpose of preparing or
furnishing consumer reports.

Investigative Consumer Reports

Personal Interviews with neighbors, friends, or associates.


(However, such information does not include specific factual information on a consumer's credit
record obtained directly from a creditor of the consumer or from a consumer reporting agency
when such information was obtained directly from a creditor of the consumer or from the
consumer.)

Access to information to determine creditworthiness for loan and deposit account, utility
services:

Is governed by FCRA to ENSURE that information is obtained for permissible purposes and
NOT EXPLOITED for illegitimate purposes

FCRA also requires any Prospective "User" of a Consumer Report (Lender, Insurer,
Landlord, or Employer) to:

, Have Legally Permissable Purpose to Obtain a Report.

The ONLY LEGALLY PERMISSIBLE reasons to Furnish a Consumer Report are:

(1) In response to a COURT ORDER or FEDERAL GRAND JURY Subpoena;


(2) In accordance to WRITTEN instructions of a Consumer;


(3) Bank which it has REASON TO BELIEVE Intend to use the Report:


- In Connection with a Credit Transaction (Extending, Renewing, and Collecting Credit);


- For Employment Purposes (Hiring, Promotion, Reassignment or Retention);


- Underwriting Insurance;


- Determine Eligibility for License or Benefit Granted by Government;


- Valuation of Credit or Prepayment Risks Associated with a Credit Obligation;


- Otherwise has a legitimate business need for the information;


- Business transaction that is initiated by the consumer; OR


- Review an account to determine whether the consumer continues to meet the terms of the
account.


(4) Response to a Request from the HEAD of STATE or LOCAL Child Support Enforcement
Agency(DOES NOT IMPACT a BANK that is not a credit reporting agency)


**(FCRA covers credit primarily for PERSONAL, FAMILY, or HOUSEHOLD
PURPOSES)**