FCRA Basic Certification ACTUAL
UPDATED QUESTIONS AND CORRECT
ANSWERS
Consumer Report - CORRECT ANSWERS✅✅Any written, oral, or other communication of
any info by a CRA bearing on a consumer's credit worthiness, standing, capacity, character,
general reputation, personal characteristics, or mode of living used or expected to be used or
collected for establishing consumer's eligibility:
3 Key Elements of a Consumer Report - CORRECT ANSWERS✅✅1. By a CRA
2. Bearing on a consumer's worthiness
3. Used to establish eligibility
Consumer Reporting Agency - CORRECT ANSWERS✅✅Engages in the assembly or
evaluating of consumer credit information or other information on consumers for the purpose
of furnishing consumer reports to third parties.
Examples of CRA - CORRECT ANSWERS✅✅Traditional - Equifax, TransUnion,
Experian
Employment screeners
Tenant Screeners
NOT CRAs - CORRECT ANSWERS✅✅Isolated transactions
Conduit functions
Public entities
Employment Purposes - CORRECT ANSWERS✅✅Evaluating a consumer for employment,
promotion, reassignment, or retention as an employee.
NOT Consumer Reports - CORRECT ANSWERS✅✅Reports made on "personal
knowledge"
Reports made among persons/entities under "common control" (subsidiary and parent
corporations)
, Reports made for purposes other than credit, insurance, or employment (skip tracing, law
enforcement, dating)
Lab reports from a lab directly to an employer.
Investigative Consumer Reports - CORRECT ANSWERS✅✅Information on a consumer's
character, general reputation, personal characteristics, or mode of living obtained through
personal interviews with neighbors, friends, or associates of the consumer reported on.
Excluded from Consumer Reports - CORRECT ANSWERS✅✅Arrest records more than 7
years old.
Negative credit data older than 7 years
Bankruptcies can be reported for 10 years.
5 Groups Affected by FCRA - CORRECT ANSWERS✅✅CRAs
End Users
Furnishers
Resellers
Consumers
5 Basic Duties of CRAs - CORRECT ANSWERS✅✅1. Maintain "reasonable procedure" to
assure "maximum possible accuracy"
2. Provide consumer reports to only those with a "permissible purpose"
3. Conduct "reinvestigation" in event of dispute
4. Make "disclosures" to consumers
5. Properly dispose of consumer info.
Reasonable Procedure - CORRECT ANSWERS✅✅If a CRA reports an item of information
that turns out to be inaccurate, it does not violate the FCRA if it has established _ in reporting
the item.
Inaccuracy, Failure to Follow Procedures - CORRECT ANSWERS✅✅Plaintiff must prove
both _ and _ in lawsuit.
UPDATED QUESTIONS AND CORRECT
ANSWERS
Consumer Report - CORRECT ANSWERS✅✅Any written, oral, or other communication of
any info by a CRA bearing on a consumer's credit worthiness, standing, capacity, character,
general reputation, personal characteristics, or mode of living used or expected to be used or
collected for establishing consumer's eligibility:
3 Key Elements of a Consumer Report - CORRECT ANSWERS✅✅1. By a CRA
2. Bearing on a consumer's worthiness
3. Used to establish eligibility
Consumer Reporting Agency - CORRECT ANSWERS✅✅Engages in the assembly or
evaluating of consumer credit information or other information on consumers for the purpose
of furnishing consumer reports to third parties.
Examples of CRA - CORRECT ANSWERS✅✅Traditional - Equifax, TransUnion,
Experian
Employment screeners
Tenant Screeners
NOT CRAs - CORRECT ANSWERS✅✅Isolated transactions
Conduit functions
Public entities
Employment Purposes - CORRECT ANSWERS✅✅Evaluating a consumer for employment,
promotion, reassignment, or retention as an employee.
NOT Consumer Reports - CORRECT ANSWERS✅✅Reports made on "personal
knowledge"
Reports made among persons/entities under "common control" (subsidiary and parent
corporations)
, Reports made for purposes other than credit, insurance, or employment (skip tracing, law
enforcement, dating)
Lab reports from a lab directly to an employer.
Investigative Consumer Reports - CORRECT ANSWERS✅✅Information on a consumer's
character, general reputation, personal characteristics, or mode of living obtained through
personal interviews with neighbors, friends, or associates of the consumer reported on.
Excluded from Consumer Reports - CORRECT ANSWERS✅✅Arrest records more than 7
years old.
Negative credit data older than 7 years
Bankruptcies can be reported for 10 years.
5 Groups Affected by FCRA - CORRECT ANSWERS✅✅CRAs
End Users
Furnishers
Resellers
Consumers
5 Basic Duties of CRAs - CORRECT ANSWERS✅✅1. Maintain "reasonable procedure" to
assure "maximum possible accuracy"
2. Provide consumer reports to only those with a "permissible purpose"
3. Conduct "reinvestigation" in event of dispute
4. Make "disclosures" to consumers
5. Properly dispose of consumer info.
Reasonable Procedure - CORRECT ANSWERS✅✅If a CRA reports an item of information
that turns out to be inaccurate, it does not violate the FCRA if it has established _ in reporting
the item.
Inaccuracy, Failure to Follow Procedures - CORRECT ANSWERS✅✅Plaintiff must prove
both _ and _ in lawsuit.
