FAIR CREDIT REPORTING ACT (FCRA)
EXAM QUESTIONS AND ANSWERS.
VERIFIED 2025/2026.
T or F: Consumer reporting agencies and credit bureaus perform a vital role in providing
information on consumers to lenders and companies throughout the country, which depend on
accurate, up-to-date information on everyday transactions, from issuing a credit card to
approving the purchase of a car. - ANS TRUE
T or F: Until passage of the Fair Credit Reporting Act in 1970, federal laws regulating consumer
privacy fell under mortgage fair lending laws - ANS FALSE. There were no laws regulating
consumer privacy before passage of the FCRA in 1970.
T or F: The FCRA requires all entities to use a consumer report when making financial decisions -
ANS FALSE. The FCRA does NOT require any entity to use a consumer report when making
financial decisions.
T or F: The FCRA requires that all financial institutions obtain information from a credit bureau
when considering any loan application - ANS FALSE. The FCRA governs how the obtained
information is used but does not require any business to use the services of a credit bureau.
T or F: The FCRA requires any entity to use a consumer report when making decisions on
creditworthiness, credit capacity, character, or general reputation of consumers - ANS FALSE
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,The purpose of FCRA is to ensure consumer reporting agencies adopt procedures to confirm the
information they collect and dissemination is which of the following?
A. Fair and equitable to the consumer
B. Confidential
C. Accurate and relevant
D. Properly used
E. All of the above - ANS E. All of the above
T or F: The FCRA governs how the credit bureau information is collected and used. Properly
used, this information serves both consumers and users - ANS TRUE
T or F: Any financial institution that regularly furnishes information to a nationwide consumer
reporting agency must provide a notice to a consumer in writing prior to or no later than 30
days after furnishing negative information to such an agency. - ANS TRUE
T or F: Regulators expect each furnisher to comply with the FCRA - ANS TRUE
The Federal Trade Commission enforces FCRA for:
A. Banks
B. Credit Unions
C. Consumer reporting agencies
D. All of the above - ANS C. Consumer reporting agencies
Penalties that can be assessed for violation of FCRA include (check all that apply)
A. Civil penalties
B. Fines up to $5,000
C. Prison sentences no more than 2 years
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, D. Public apology to all affected - ANS A, B, and C. Public apology is not one of the penalties
T or F: Supervisory actions (penalties from the regulatory agencies can be assessed against
financial institutions that do NOT develop and maintain, as part of their information security
program, appropriate internal controls to ensure that they properly dispose of all consumer
information derived from a consumer credit report - ANS TRUE
Agencies that do not maintain a database, but assemble and merge information from one or
more nationwide consumer reporting agencies. - ANS Resellers
T or F: Resellers furnish such information (in the form of credit reports) to third parties -
ANS TRUE
Any consumer reporting agencies that compile and maintain files on a nationwide basis relating
to a consumer's medical records or payments, residential or tenant history, check writing
history, employment history, and insurance claims - ANS Nationwide Specialty Consumer
Reporting Agencies
Nationwide specialty consumer reporting agencies are consumer reporting agencies that
compile and maintain special consumer files. What types of information do these agencies
compile and maintain? Check all that apply.
A. Medical records or payments
B. Residential or tenant history
C. Employment history
D. Military service records - ANS A, B, and C
The FCRA governs when a consumer reporting agency (credit bureau) may furnish reports to
users of those reports. These are called? - ANS Permissable purposes
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
EXAM QUESTIONS AND ANSWERS.
VERIFIED 2025/2026.
T or F: Consumer reporting agencies and credit bureaus perform a vital role in providing
information on consumers to lenders and companies throughout the country, which depend on
accurate, up-to-date information on everyday transactions, from issuing a credit card to
approving the purchase of a car. - ANS TRUE
T or F: Until passage of the Fair Credit Reporting Act in 1970, federal laws regulating consumer
privacy fell under mortgage fair lending laws - ANS FALSE. There were no laws regulating
consumer privacy before passage of the FCRA in 1970.
T or F: The FCRA requires all entities to use a consumer report when making financial decisions -
ANS FALSE. The FCRA does NOT require any entity to use a consumer report when making
financial decisions.
T or F: The FCRA requires that all financial institutions obtain information from a credit bureau
when considering any loan application - ANS FALSE. The FCRA governs how the obtained
information is used but does not require any business to use the services of a credit bureau.
T or F: The FCRA requires any entity to use a consumer report when making decisions on
creditworthiness, credit capacity, character, or general reputation of consumers - ANS FALSE
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,The purpose of FCRA is to ensure consumer reporting agencies adopt procedures to confirm the
information they collect and dissemination is which of the following?
A. Fair and equitable to the consumer
B. Confidential
C. Accurate and relevant
D. Properly used
E. All of the above - ANS E. All of the above
T or F: The FCRA governs how the credit bureau information is collected and used. Properly
used, this information serves both consumers and users - ANS TRUE
T or F: Any financial institution that regularly furnishes information to a nationwide consumer
reporting agency must provide a notice to a consumer in writing prior to or no later than 30
days after furnishing negative information to such an agency. - ANS TRUE
T or F: Regulators expect each furnisher to comply with the FCRA - ANS TRUE
The Federal Trade Commission enforces FCRA for:
A. Banks
B. Credit Unions
C. Consumer reporting agencies
D. All of the above - ANS C. Consumer reporting agencies
Penalties that can be assessed for violation of FCRA include (check all that apply)
A. Civil penalties
B. Fines up to $5,000
C. Prison sentences no more than 2 years
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, D. Public apology to all affected - ANS A, B, and C. Public apology is not one of the penalties
T or F: Supervisory actions (penalties from the regulatory agencies can be assessed against
financial institutions that do NOT develop and maintain, as part of their information security
program, appropriate internal controls to ensure that they properly dispose of all consumer
information derived from a consumer credit report - ANS TRUE
Agencies that do not maintain a database, but assemble and merge information from one or
more nationwide consumer reporting agencies. - ANS Resellers
T or F: Resellers furnish such information (in the form of credit reports) to third parties -
ANS TRUE
Any consumer reporting agencies that compile and maintain files on a nationwide basis relating
to a consumer's medical records or payments, residential or tenant history, check writing
history, employment history, and insurance claims - ANS Nationwide Specialty Consumer
Reporting Agencies
Nationwide specialty consumer reporting agencies are consumer reporting agencies that
compile and maintain special consumer files. What types of information do these agencies
compile and maintain? Check all that apply.
A. Medical records or payments
B. Residential or tenant history
C. Employment history
D. Military service records - ANS A, B, and C
The FCRA governs when a consumer reporting agency (credit bureau) may furnish reports to
users of those reports. These are called? - ANS Permissable purposes
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
