My FCRA
Can a bank consolidate Affilate Marketing opt out notices with GLBA Privacy Notices?
YES. opt out and renewal notices (renewal of opt out bc there is a 5 year minimum) may be consolidated with any other notice or disclosure required under any other provision of law. Renewal notieces may be consolidated with annual GLBA privacy notices also.
fraud alert = X days (can be extended to X) active duty alert = X months
fraud alert = 90 days (can be extended to 7 years) active duty alert = 12 months
Bank has a total of 10,000 consumers granted credit to. Bank provides 6,000 of it consumers with risk based notice with lower scores of 699. The bank does not provide notice to highest credit score consumers of 700 or greater that total 4,000 consumers. Is the bank in violation?
No 40/60
Gregory submits app for teller position. He left the section allowing a background check blank on app. Can bank still run credit report?
No even though he applied ---without written consent cannot pull credit
All of the follow are requiremnets that must be meet if bank procures an investigative consumer report EXCEPT: 1) clear and accurate disclosures 2) consumers rights to request info about report 3) disclosure in writing no later than 3 biz days before date report is requested 4) statement with rights under FCRA 5) bank certifies consumer reporting agency that it has complied with disclosure requirements
3) it must be in writing no later than 3 biz days AFTER date report was requested.
If receive notice of dispute from CRA regarding accuracy, bank must o Conduct investigation o Review relevant info o Report results of investigation to CRA o Report results to all NCRA o Modify info, delete, or permanently block reporting of info, if applicable. within: 30 days 15 days 90 days 60 days
30 days
If a bank communicates information provided by a consumer on an application form concerning accounts w/ other banks to affiliates AND uses info recieved from a different affiliate to market 3P product to the consumer, which of the following is NOT a violation? 1) Bank does not need to provide opt out notice 2) bank only needs to provide an opt out notice to share info about application regarding accounts w/ other banks 3) bank only needs to provide an opt out notice to market affiliates product to consumer 4) bank provides a consolidated opt out notice with both sharing and marking opt outs
4) Under FCRA, certain consumer info will be subject to 2 opt outs, a sharing opt out and a marketing use opt out. These 2 opt out mays be consolidated.
Affiliate Marketing requires opt out unless: 1) pre existing biz relationship 2)perfrom services on behalf of affiliate (unless consumer opt out) 3) initated by consumer 4) all of the above 5) #1 & #3
4) all of the above. There are six exceptions to notice and opt out for affiliate marketing.
Bank A uses consumer reports when determining whether to extend credit to consumer purpose loans. Bank A also extens credit on APR that are materially less favorable than the APR the bank has extended to other consumers. All of the following are true EXCEPT: 1) bank can provide RBPN to customers on a case by case basis determining if priced materially less than. 2) bank can provide RBPN to customer who has credit score lower than cutoff score 3) bank can set APR based off of credit by assigning each consumer pricing tiers of over 6 tiers and not provide RBPN to top 30%-40% of tiers 4) bank is not required to give any notice
4) bank is not required to give any notice
The bank obtains a list from a consumer reporting agency of everyone in County X with a current home mortgage loan and credit score of 700 and sends solicitations. The bank includes a short notice stating right to opt out and toll free number. Is bank in violation? 1) no violation 2) yes the bank should not send any notice 3) yes the short notice should state the existence and location of the long notice but not required to include long notice with solicitation 4) yes short notice must state location of long notice and long notice must be included with solicitaion
4) yes short notice must state location of long notice and long notice must be included with solicitaion long notice must be labeled PRESCREEN & OPT OUT NOTICE and state based on credit report meeting criteria
what must the bank provide if the customer is denied of employment based on consumer report? 1) nothing 2) copy of the report prior to denial 3) in writing the rights of the consumer prior to denial 4) adverse action notice given at denial 5) all of the above
5) all of the above
If a customer sends a direct dispute to the bank that furnishes info the bank must investigate UNLESS: 1) dispute is about incorrect social security number 2) dispute is about fraud alert not actual fraud 3) name of the current employer 4) public records bankruptcy (unless info was provided by bank) 5) all of the above are exceptions to investigations
5) all of the above are exceptions to investigations 2) if it was about actual fraud the bank would have to investigate
All of the following are exceptions for providing a risk based pricing notice EXCEPT: 1) consumer applies for specific terms of credit and receives them 2) adverse action notice is provided 3) bank makes a firm offer of credit in a prescreened solicitation 4) bank provides a credit score disclosure to each consumer that requests a loan 5) when bank provides a credit sccore disclosure to only requests with no credit score available
5) when bank provides a credit sccore disclosure to only requests with no credit score available (this is only 1 of 3 examples: When a bank generally provides a credit score disclosure to each consumer that requests a loan that is secured by residential real property, not secured by residential real property, OR no credit score is available.)
all of the following are true regarding obtaining consumer reports for employment purposes EXCEPT: 1)requires written permission of the consumer to procure a consumer report for "employment purposes" 2) disclosures can be given orally 3) must be disclosed in writing that consumer report may be obtained for employment purposes after procuring report 4)all of the above are incorrect 5)only #1 and #3 are correct 6) #2 and #3 are incorrect
6) #2 and #3 are incorrect disclosures must be in WRITING & PRIOR to procuring report
Which of the following are permissible purposes for obtain consumer reports? 1) Child Support 2) Court Order 3) To a bank which it has reason to believe intends to use info for employment purposes 4) Written instructions from consumer 5) none of the above 6) all of the above 7) all of the above except #3
6) all of the above additional permissible purposes *intends to use credit report *underwriting of insurance *eligibility for licenses/other benefit *potential investor in connection w/existing credit *legitmate business need *business transaction inititated by consumer *determination of consumer meeting terms of the account
all of the following are true regarding sharing with affiliates EXCEPT: 1) share own transactions and experiences with consumer to any 3P 2) credit card transaction from lender to retailer 4) jointly involved in the decision to approve a consumers request for a product with non-affiliate 5) bank provides criteria to an affiliate to use in marketing the banks product and the affiliate uses criteria to send marketing materials to the affiliats own customers that meet the criteria. 6) banks can use info received from an affiliate to market its products to a consumer without notice.
6) banks can use info received from an affiliate to market its products to a consumer without notice. must give customer notice and opportunity to opt out
Bank sets APR rates by assigning 5 pricing tiers to consumer auto loans. What should the bank do? 1) nothing the bank is in compliance 2) provide notice to home loan applicant to the consumers that fall in in the bottom tiers 3-5 3) provide risk based pricing notice to all consumers 4) provide risk based pricing notice to top two tiers 5) provide risked based pricing notice to all tiers except the top tier (tier 1) 6) provide risk based pricing notice to bottom three tiers
6) provide risk based pricing notice to bottom three tiers Notice to home loan notice is required for mortgage loan where consumer report is used
What methods are used to determine if consumer should receive risk based pricing notice?
Case by case credit score proxy 40/60 (40% is highest credit score remaining 60% should receive notice) tiered rate pricing
When should the bank provide a negative information notice?
Either before negative information is provided to CR agency OR 30 days after reporting the negative info
Do banks have to give opt out notice if bank provides criteria to an affiliate to use in marketing the bank's product and the affiliate uses the criteria to send marketing materials to the affiliate's own customers that meet the criteria?
NO. bank is not using shared eligiblity info to make solicitations.
What needs to be provided if the bank makes a mortgage loan using credit scores?
NOTICE TO HOME LOAN APPLICANT credit score, range of possible scores, date score was created and key factors (not to exceed 4)
Do banks have to give opt out notice if consumer has homeowners insurance policy with insurance co. Insurance co. shares eligibility info with affilitated depository institution. Depository institution wants to make a solicitation to the consumer about its home equity loan products. The depository institution doesn't have pre-existing biz relationship w consumer and no other exceptions apply.
YES. the depository instiution may not use eligibility info it recieved from insurance affiliate to make solictations to the consumer about its home equity loan products unless insurance co gave the consumer a notice and opportunity to opt out and the consumer does not opt out.
If a bank communicates a consumers credit score with an affiliate and does not provide the consumer with a notice and an opportunity to opt out of this sharing before info is first communicated is this a violation?
Yes - must provide opt out notice when sharing "other" info such as application form info concerning other bank account, and credit score.
The bank issues electronic receipts that contain the last 5 digits of the card number and expiration dates. Is this a violation with regard to FCRA?
Yes can not contain expiration dates (5 digits or less is okay)
can a bank decline cusotmers with 90 day past due installmnent loan to retailer but not decline customer with 90 day past due hospital bill?
Yes.
Bank A uses consumer reports when determining whether to extend credit to consumer purpose loans. Further, the bank uses credit scores to set material terms (APR) of credit. The bank provides risk based notice to approximately 40% of its consumers with lowest credit scores. And the remaining 60% of higher credit scores are not provided to consumer. Is the bank in violation?
Yes. Bank must send notice to 60% of consumers with lowest scores.
which methods does the bank need to utilize to determine which consumer must receive a RBPN? a. credit score proxy b. on a case-by-case basis c. tiered pricing method d. random generator
a, b, c credit score proxy (40/60 where 40% has lowest APR & most favorable material terms and higher credit scores --where 60% has highest APR & other than most favorable terms i.e. 40% of customers had credit scores of 700 or better and 60% of customers had credit scores of less than 700) all cusotmers in 60% category must recieve RBPN tiered pricing
for tiered pricing method which of the follwing are true? a. 4 tiers - all who do not qualify for top tier b. 5 or more - all except top 2 tiers c. More - no notice required for top 30%-top 40% of tiers d. provide RBPN to all tiers except the top tier regardless of amount of tiers
a, b, c five or more tiers are also top 30%-40% not requirement of RBPN
all of the following are true regarding consumer reports for employment purposes EXCEPT: a. must provide adverse action no later than 30 days after denial b. must disclose in writing the rights of consumer PRIOR to denial c. provide copy of report PRIOR to denial d. written permission to procure report for employment purposes e. disclosure that report may be obtained for employment puroses in writing prior to procuring report
a. must provide adverse action no later than 30 days after denial Must provide adverse action at the time of denial
banks that furnish information to the NCRA must do what if there is an address descrepancy? a. form a reasonable belief that the report relates to the consumer whose report was requested b. has a continuing relationship with cusotmer c. regularly furnishes info to the NCRA d. user must furnish the confirmed address
all of the above
when does a bank need to provide a RBPN? a. when a credit score is used b. when a consumer report is used c. when extends credit to consumer on terms materially less favorable then terms the bank has exteneded to other consumers d. provide to any consumer that is extended credit
b. and c. are correct does not need to be provided to everyone and is provided on materially less terms regardless of credit score or not
all of the following requirements need to be met when an investigatie CR is conducted EXCEPT: a. statement with rights under FCRA b. must be in writing no later than 3 biz days before report was requrested c. consumers right to request other info about report d. bank certifies to CRA that it has complied with disclosure requirements
b. must be in writing no later than 3 biz days before report was requrested must be in writing no later than 3 biz days AFTER report was requrested as well as clear and accurate disclosures that investigative CR may be obtained
If a bank offers credit cards and only uses a single annual APR and in some cases uses the lowest possible APR for that program (even if there are lower APRs offered for other card programs) which of the following are TRUE? a. the bank needs to provide a RBPN b. no RBPN is required c. the bank must apply either tiered pricing or credit score proxy methods d. the bank is prohibited from utilzing those procedures
b. no RBPN is required
Bob applies for specific terms for his auto loan. The bank decides to grant credit on those terms. Which of the following is TRUE? a. bank must provide RBPN b. bank must provide NHLA c. no notice is required d. bank is prohibited from granting credit based on consumers terms e. a range of alternatives needs to be given to the consumer
c. no notice is required Specific terms must not include a range of alternatives. if bank denied this applicant no RBPN would be required
obtaining consumer reports are permissible for the following EXCEPT: a. court order b. child support c. written instruction from consumer that says not to pull credit report d. the bank has reason to believe that a review of the customers account is necessary to determine if consumer continues to meet the terms of the account
c. written instruction from consumer that says not to pull credit report legitimate biz need --> written instruction from consumer also when bank has reason to believe employment purposes, insurance, credit report w/transactions, and potential investor
which of the following are true regarding Notice to Home Loan Applicant a. mortgage loan closed end only b. must provide if use credit score c. must include name, address, and # of each CRA that was used for each credit score d. in addition to NHLA notice must disclose the credit score notice (credit score, range, date socre was created, & key factors-not to exceed 4) e. all of the above f. all of the above except a g. all of the above except d
f. all of the above except a mortgage loan closed OR open end
does direct dispute requirements apply to fraud alerts or active duty alerts?
no exceptions to direct dispute requirement are ID (name, SSN, DOB, etc.) ID of employers inquries for CR info from public record such as bankruptcies, judgements fraud alerts/active duty info provided to CRA by another furnisher
Negative Informaiton Notice must be provided before negative info is provided to CRA or within 30 days after reporting negatie info
true
a RBPN is not requried if a NHLA notice and credit score notice was given?
true
Must establish reasonable written policies and procedure regarding accuracy and integrity of information furnished to CRA Must notify CRA of voluntary closure of account by consumer (if regulatory furnish info to CRA) Must notify CRA of month & year of commencement of delinquencies within 90 days
true true true
recalculaiton of credit score proxy every 2 years T/F multiple creidt scores must be same method using average, highest, lowest, etc. T/F no credit score should be placed in materially less favorable terms category T/F all RBPNs need to be given to top tier (if 4) or top 30-40% of tiered pricing method and top 40% if credit score proxy T/F the purpose of RBPN is to increase accuracy of credit reporting information T/F
true true true false RBPNs are not required for top tier (if 4) or top 30-40% of tiered pricing method and top 40% if credit score proxy true notify customers of derogatory credit that leads to poor credit offerings - give them a chance to remedy incorrect reported data
Debit & credit card issuers must have procedures to assess the validity of address change if card issuer receives a notice of change of address within short period of time (w/in 30 days) of receiving a request for additional or replacement card for same account the notice must be separate from regular correspondence with cardholder
true true
when must a risk based pricing notice be provided to customers?
when bank extends credit to the consumer on terms that are "materially less favorable" than the terms the bank has extended to other consumers based on consumer report (does not have to be credit score)
Is the bank in violation if they do not provide a customer an adverse action at the time the bank takes adverse action in an employment situation?
yes. must provide adverse action notice