CR4 - Fair Credit Reporting Act

C 3D905EB356FB48CBADABC7D80365B981 Not answered. The correct answer is c. A is incorrect because only consumers must receive risk based pricing notices. B is incorrect because risk based pricing notices must be provided when a lender increases a consumer's rate based on a credit report. D is incorrect because a risk-based pricing notice is not required when the lender approves a loan on the terms requested by the consumer.

1. Lana, a new lender at Loan Star Bank, is taking compliance training. What would Lana have learned about risk-based pricing notices in her Fair Credit Reporting Act (FCRA) training? A. Risk-based pricing notices must be provided to business customers B. Risk-based pricing notices must be provided if, after conducting a periodic review of a consumer's credit, a lender decreases a customer's annual percentage rate based on information in a consumer report C. A lender must provide a risk-based pricing notice when, based on the consumer's credit report, the creditor provides credit to the consumer on materially less favorable terms than it provides to other consumers D. A risk-based pricing notice must be provided even when the lender approves the loan on the terms requested by the consumer

C 1AD1E2D0B0244EE98C880B8F3F3F90C2 Not answered. The correct answer is c. A is incorrect, because the bank used the report when making its credit decision. B is incorrect because the FCRA notice must be provided in writing. Also, a written notice is preferable for documentation purposes. D is incorrect because it does not address the bank's need to provide an adverse action notice with the name, address, and telephone number of the consumer reporting agency. The consumer should contact the consumer reporting agency within 60 days of receiving the adverse action notice to request a free copy of the report. Note: an information user IS required to provide the report if it was used for employment purposes and contributed to an adverse action.

1. When a bank declines a loan application based on a credit report obtained from a consumer reporting agency, what is its responsibility under the Fair Credit Reporting Act (FCRA)? A. The bank has no responsibilities under the Fair Credit Reporting Act B. Orally explain to the applicant that a credit report was received and the bank's denial was based on it C. Notify the applicant of the adverse action. Explain that the action was in part based on a credit report and give him the name and address of the consumer reporting agency as well as his credit score and the reasons for that score D. Give the applicant a copy of the credit report

D D7076906711F4D6C9B1D91D20594ADE3 Not answered. The correct answer is d. A is incorrect because adverse action is the denial of a product or service or an adverse change in the terms requested by the consumer. B is incorrect because the FCRA requires opt-outs, not op-ins. C is incorrect because a permissible purpose is an allowable reason for consumer reporting agencies to furnish consumer reports under FCRA.

10. According to Fair Credit Reporting Act (FCRA), the consumer has the right to direct that an entity not communicate certain information about the consumer to its affiliates. What is this right commonly called? A. An adverse action B. An affiliate C. A permissible purpose D. An opt-out

C 39497EC62CEB4988B9FF1ACB3CFA6A24 Not answered. The correct answer is c. A is incorrect because when the loan is approved, no risk-based pricing notice is required. B is incorrect because risk-based pricing notices must be provided when a lender increases a consumer's rate based on a credit report. D is incorrect because only consumers must receive risk-based pricing notices.

10. Banks and mortgage lenders use risk-based pricing to determine what interest rate a consumer will qualify for on a loan. Under which of the following circumstances is a lender is required to provide a risk-based pricing notice? A. The lender approves the loan on the terms requested by the consumer B. If, after conducting a periodic review of a consumer's credit, a lender decreases a customer's annual percentage rate based on information in a consumer report C. When, based on the consumer's credit report, the creditor provides credit to the consumer on materially less favorable terms than it provides to other consumers D. When a commercial customer receives a higher rate on a loan

D 6BFD689EEE554CAD9BE6F5523D17D881 Not answered. The correct answer is d. A, B, and C are incorrect because they do not provide the required amount of detail.

10. First National Bank has denied a credit application from Mr. Johnson because the application scored too low on the bank's credit-scoring system which relies, in part, on information from a consumer report. Other parts of Mr. Johnson's application received low scores as well. Which statement best describes First National's responsibility to Mr. Johnson under the Fair Credit Reporting Act (FCRA)? A. Send an adverse action notice that only provides the name and address of the consumer reporting agency the bank relied upon in making its decision B. Send a notice that explains a credit report was used C. Send an adverse action notice that gives only a summary of the negative credit on the report D. Send an adverse action notice that provides the name and address of the consumer reporting agency the bank relied upon in making its decision, explains a credit report was used, provides the credit score and reasons for the score as well as any additional information required under the CFPB's Regulation B

B 9BB93F98428B4F98918D13F6107EB280 Not answered. The correct answer is b. A is incorrect because the marketing opt-out is a requirement and is a right of the consumer. C is incorrect because the consumer does not have the right to request eligibility criteria. D is incorrect because affiliated entities may not communicate ''other'' information unless the consumer has been given the opportunity to opt-out and the consumer chooses not to opt-out.

10. Which statement best describes information sharing with affiliates under the Fair Credit Reporting Act (FCRA)? A. Affiliates have the right to market their own products or services to certain consumers without offering an opt-out B. The consumer has the right to direct that an entity not communicate certain information about the consumer to its affiliates C. The consumer has the right to request the eligibility criteria used for solicitations received from an affiliate of their financial service provider D. An entity can share with affiliates both experiential and ''other'' information without restriction

A 0D58D3AF769640528CC44CB658D21D94 Not answered. The correct answer is a. B is incorrect because regularly engaging in assembling consumer credit information in order to furnish consumer reports to third parties is the definition of a consumer reporting agency. C is incorrect because regularly engaging in assembling consumer credit information in order to furnish consumer reports to third parties is the definition of a consumer reporting agency and because notifying the bank when information in a consumer report results in adverse action is not a furnisher or a provider requirement. D is incorrect because the consumer, not the bank, must be notified when information results in adverse action.

11. According to Fair Credit Reporting Act (FCRA), Responsible Bank & Trust is an ''information provider'' and an ''information user.'' Which option lists the descriptions that define these two terms? A. Responsible Bank & Trust regularly submits information to several credit reporting agencies regarding consumer credit accounts with its office and requests credit reports that are used to evaluate the creditworthiness of loan applicants B. Responsible Bank & Trust requests credit reports that are used to evaluate the credit worthiness of loan applicants and regularly engages in assembling consumer credit information in order to furnish consumer reports to third parties C. Responsible Bank & Trust regularly engages in assembling consumer credit information in order to furnish consumer reports to third parties and the bank must be notified when information in a consumer report results in adverse action D. Responsible Bank & Trust must be notified when information in a consumer report results in adverse action and the bank regularly submits information to several credit reporting agencies regarding consumer credit accounts with its office

A 07BDC59AA52A4C6DA11F2D4D1B1BBF44 Not answered. The correct answer is a. B, C, and D are incorrect because they do not accurately describe one of the tools provided by the FACT Act changes to the FCRA.

11. Consumers, banks, and CRAs were given some new requirements by the Fair and Accurate Credit Transactions Act (FACT Act). Which statement is an accurate description of one of those requirements? A. The FCRA now requires that banks implement a written, Board-approved program to mitigate identity theft B. The FCRA now gives every consumer the right to a free credit report every two years C. The FCRA now requires consumers to file a police report if they suspect that they are victims of identity theft D. The FCRA now uses different state created systems of fraud detection that enhances efforts to catch identity thieves

A 6BE3D5892AAA43BFADEF3860F69D088D Not answered. The correct answer is a. B is incorrect because, although the credit report had no adverse information, the lack of information is also adverse and the bank made its credit decision based on the consumer report. C is incorrect because the information user must provide the name, address, and telephone number of the consumer reporting agency. Also, a written notice is preferable for documentation purposes. D is incorrect because it does not address the bank's need to provide an adverse action notice with the name, address, and telephone number of the consumer reporting agency. The consumer should contact the consumer reporting agency within 60 days of receiving the adverse action notice to request a free copy of the report. Note: an information user IS required to provide the report if it was used for employment purposes and contributed to an adverse action.

11. Mr. Hilliard applied to Reliable Bank for a car loan. The bank requested a credit report on Mr. Hilliard from a consumer reporting agency and found he had a low credit score because he had very little credit. No negative items were on the report, but based on what was reported, there was nothing the bank could use to prove creditworthiness. In addition, Mr. Hilliard had been employed at this job for four months and his previous work experience was difficult to verify. The bank denied his application for a loan based on these factors. Which statement best describes the bank's responsibility under the Fair Credit Reporting Act (FCRA)? A. Notify Mr. Hilliard of the adverse action. Explain that the action was in part based on a credit report and give him the name and address of the consumer reporting agency as well as his credit score and the reasons for that score B. The bank has no responsibilities under the Fair Credit Reporting Act because the credit report has no adverse credit information on it C. Orally explain to Mr. Hilliard that a credit report was received and although it contained no negative reports, there was simply too little credit history D. Give Mr. Hilliard a copy of the credit report

A 2B49DB9F00774EF380D46ED963666A9E Not answered. The correct answer is a. B, C, and D are incorrect. The bank does not have a permissible purpose to obtain a consumer report on an individual who is not personally liable for repayment of the loan unless the consumer has authorized the bank, in writing, to obtain the report.

11. When the bank does not have a permissible purpose to obtain a consumer report on an individual who is not going to be personally liable for repayment, such as an officer of a corporation, what can the bank do? A. The bank can obtain written permission from the individual to obtain that report B. The bank may obtain the report for safety and soundness purposes C. The bank may request that the individual provide a copy a prior credit report to the bank D. The bank may obtain the report anyway, since the company is borrowing money from the bank

D A900715F4A9D407F8132982FB45C0B42 Not answered. The correct answer is d. A, B, and C are incorrect because they do not provide the required amount of detail.

3. If a bank declines an application for credit based on a consumer report and credit score, then which statement best describes its responsibility to the applicant? A. Send an adverse action notice that only states the reasons the credit was denied B. Send a notice that explains only that a credit report was used C. Send an adverse action notice that gives only a summary of the negative credit on the report D. Send an adverse action notice that states the reasons the credit was denied, explains that a credit report was used, provides the credit score and reasons for the score and also gives the name, address, and phone number of the credit reporting agency

A 95BAB5BB4CB44740A4C8AA56D92FFC47 Not answered. The correct answer is a. B is incorrect because this information is not required. C is incorrect because this information is not required in the FCRA notice and the credit applicant can obtain the consumer report within 60 days, not 30 days. D is incorrect because the adverse action notice would provide a statement that the consumer reporting agency did not make the credit decision.

2. A credit applicant receives an adverse action notice informing her that her loan request has been denied by her financial institution. When the credit decision is based on information provided by a consumer reporting agency, the Fair Credit Reporting Act (FCRA) adverse action statement must include what information? A. The name, address, and telephone number of the consumer reporting agency B. A statement telling the applicant not to apply for credit with the financial institution again C. A notice that the consumer has the right to obtain a free copy of the consumer report within 30 days D. A statement that the consumer reporting agency made the credit decision

B A2F5CD20648C48EB9CF245ABCF03B6FF Not answered. The correct answer is b. A is incorrect because one of the tasks, task 1, violates the FCRA because it involves the sharing of 3rd party information with an affiliate without providing an opt out. C is incorrect because the sharing of transactional information with affiliated parties is not a consumer report and is permitted under the FCRA. D is incorrect because only one of the tasks is considered to be a violation of the FCRA.

2. During the course of your day you accomplish two tasks: (1) you call a credit officer at an affiliate, Reliable Card Services, and describe general information contained in a consumer report for a particular customer (the customer was not given the opportunity to opt-out) and, (2) you respond to a call from a loan officer at your affiliated mortgage company and describe your bank's experience with a borrower. Which statement is true regarding these tasks? A. Neither task violates the FCRA B. Only task 1 violates the FCRA C. Only task 2 violates the FCRA D. Both tasks violate the FCRA

D 80C4668E0AE744A58C7C5FA24652B8D5 Not answered. The correct answer is d. A, B, and C are incorrect because they do not provide the required amount of detail.

2. Your bank has declined a loan request from Mrs. Smith and sends an adverse action notice. Her credit report contained derogatory information concerning collections and judgments, as well as past-due credit obligations and her credit score did not meet your bank's minimum requirements. Which statement best describes your bank's responsibility to Mrs. Smith under the Fair Credit Reporting Act (FCRA)? A. Send an adverse action notice that only states the reasons the credit was denied B. Send a notice that explains only that a credit report was used C. Send an adverse action notice that gives only a summary of the negative credit on the report D. Send an adverse action notice that states the reasons the credit was denied, explains that a credit report was used, provides the credit score and reasons for the score as well as any additional information required under the CFPB's Regulation B

D 262A6ED97EFD4DFF95563214CCCDF237 Not answered. The correct answer is d. A is incorrect because third party information may not be shared among affiliates unless the consumer has been given the opportunity to opt out and has not opted out. B is incorrect because consumers may also receive a free copy of their credit report annually. C is incorrect because Reliable Card Services must do more than just notify consumers that their information will be shared among affiliates, it must notify consumers of their ability to opt-out of certain types of information sharing.

3. Responsible Card Services would like to supply copies of their cardholders' credit reports with affiliated parties. What does the Fair Credit Reporting Act (FCRA) require Responsible Card Services to do before sharing the information with their affiliate? A. Nothing is required; all consumer information may be shared without restriction among affiliates B. They must notify consumers of their right to obtain a free copy of their credit report C. They must notify consumers that their information will be shared among affiliates D. They must notify consumers of their ability to opt out of having this information shared and provide a reasonable means for consumers to opt out

C D793907FE74A41BDBE3AC1D11E3E8F62 Not answered. The correct answer is c. A, B, and D are incorrect because they do not accurately describe FACT Act changes to the FCRA

3. Which statement is an accurate description of one of the important changes the Fair and Accurate Credit Transactions Act (FACT Act) made to the Fair Credit Reporting Act (FCRA)? A. The FCRA now requires consumers to file a police report if they suspect that they are victims of identity theft B. The FCRA now uses different state created systems of fraud detection that enhances efforts to catch identity thieves C. The FCRA now requires that banks implement a written, Board-approved program to mitigate identity theft D. The FCRA now gives every consumer the right to a free credit report every two years

B BA04C6EB0AE64557BC61CC9AA47E465C Not answered. The correct answer is b. A is incorrect because the institution may not obtain credit reports on individuals who are not personally liable for repayment without a written authorization. C is incorrect because a report cannot be ordered to determine an individual's potential value as a deposit customer. D is incorrect because obtaining credit information on a family member of a job applicant is not permissible under the FCRA.

4. In which circumstance is it permissible for Responsible Bank and Trust to request a consumer report from a consumer reporting agency? A. The institution automatically requests reports on all principals of corporations when those individuals are not personally responsible for the loan B. The institution is developing a solicitation for home equity lines of credit and requests information based on established criteria that will result in a firm offer of credit C. The institution is targeting several prominent individuals in the community as potential deposit customers and orders a report on each individual D. The institution obtains credit reports on spouses and family members of potential employees to ensure that there are no financial issues that could impact an applicant's job performance

A 935C6FADB77B4D35BA069E4ACCA7CDB8 Not answered. The correct answer is a. B is incorrect because you must do more than just notify consumers that their information will be shared, you must notify consumers of their ability to opt-out of certain types of information sharing. C is incorrect because, although consumers may receive a free copy of their credit report annually, there is no notification requirement for banks. D is incorrect because third party information may not be shared unless the consumer has been given the opportunity to opt-out and has not opted-out.

4. National Bank's marketing department plans to share third party information with its mortgage and brokerage affiliates. What does the Fair Credit Reporting Act (FCRA) require National to do before sharing the information? A. Notify consumers of their ability to opt-out of having this information shared and provide a reasonable means for consumers to opt-out B. Notify consumers that their information will be shared C. Notify consumers of their right to obtain a free copy of their credit report D. Nothing is required; all consumer information may be shared without restriction

A A842EB99263C434C86A119E536C5B980 Not answered. The correct answer is a. B is incorrect because this information is not required in the FCRA notice. C is incorrect because this information is not required in the FCRA notice and the credit applicant can obtain the consumer report within 60 days, not 30 days. D is incorrect because the adverse action notice would provide a statement that the consumer reporting agency did not make the credit decision.

4. The Fair Credit Reporting Act (FCRA) requires that a lender provide an adverse action notice containing the FCRA statement when a credit application is denied by the financial institution. When the credit decision is based on information provided by a consumer reporting agency, the FCRA adverse action statement must include what information? A. The name, address, and telephone number of the consumer reporting agency B. A statement telling the applicant not to apply for credit with the financial institution again C. A notice that the consumer has the right to obtain a free copy of the consumer report within 30 days D. A statement that the consumer reporting agency made the credit decision

C D12C3F642C064862916EEA170869BF75 Not answered. The correct answer is c. A, B, and D are incorrect. You do not have a permissible purpose to obtain a consumer report on an individual who is not personally liable for repayment of the loan unless the consumer has authorized the bank, in writing, to obtain the report.

5. Howie Doohan, the CEO of Vinyl Resting Place, Inc.—a company that makes vinyl-lined coffins—has come to your bank for a loan. Since he is the CEO he is not personally liable for repayment of the loan, but your senior loan officer wants you to obtain a credit report on Howie, anyway. What can you do? A. You may obtain the report for safety and soundness purposes B. You may request that Howie provide a copy a prior credit report to the bank C. You can obtain written permission from Howie to obtain that report D. You can obtain the report anyway, since the company is borrowing money from the bank

C 1803F8BF09B34F43B631000A3978761C Incorrect. The correct answer is c. A is incorrect because one of the reasons is permissible. B is incorrect because a report cannot be ordered to determine an individual's potential value as a deposit customer. However, reports may be ordered to determine eligibility for a solicitation that will result in a firm offer of credit if certain conditions are met. D is incorrect because one of the reasons is not permissible.

5. Responsible Bank & Trust requested consumer reports from a consumer reporting agency for two reasons: (1) the institution is targeting several prominent individuals in the community as potential deposit customers and orders a report on each individual and, (2) the institution requests reports on all delinquent borrowers for collection purposes. Which statement is true regarding these reasons? A. Neither reason is permissible according to the provisions of the Fair Credit Reporting Act B. Only reason 1 is permissible according to the provisions of the Fair Credit Reporting Act C. Only reason 2 is permissible according to the provisions of the Fair Credit Reporting Act D. Both reasons are permissible according to the provisions of the Fair Credit Reporting Act

B 3C3B47CAB0F54D74930A75241A13B02C Not answered. The correct answer is b. A is incorrect because a consumer report does not include the sharing of transactional information with unaffiliated third parties. C is incorrect because a consumer report does not include the sharing of transactional information between affiliates. D is incorrect because the information shared does not include credit information about specific customers.

5. Which transaction involves communication that would be considered a consumer report and therefore subject to the Fair Credit Reporting Act (FCRA)? A. A former customer applied to rent an apartment and asked you to provide a reference to his prospective landlord B. You receive a report from a credit bureau containing general credit information on a consumer who is applying for a mortgage loan C. You speak with an investment officer with an affiliated investment company and describe your bank's experience with a deposit customer D. You speak with a credit officer at Reliable Card Services and describe general information concerning the credit history of a targeted segment of your loan portfolio without singling out any particular customer

B 1BE6439D2B394A2D9FB7EE92F235AB9E Not answered. The correct answer is b. A is incorrect because one of the reasons is permissible. C is incorrect because the institution cannot request consumer reports solely for marketing purposes. D is incorrect because one of the reasons is not permissible.

7. Responsible Bank & Trust requested consumer reports from a consumer reporting agency for two reasons: (1) the institution is developing a solicitation for home equity lines of credit and requests information based on established criteria that will result in a firm offer of credit and, (2) the institution requests consumer reports on all bank customers for marketing purposes. Which statement is true regarding these reasons? A. Neither reason is permissible according to the provisions of the Fair Credit Reporting Act B. Only reason 1 is permissible according to the provisions of the Fair Credit Reporting Act C. Only reason 2 is permissible according to the provisions of the Fair Credit Reporting Act D. Both reasons are permissible according to the provisions of the Fair Credit Reporting Act

D 23DE38CA8B534A0388439D76026A20D4 Not answered. The correct answer is d. A is incorrect because, although the credit report had no adverse information, the lack of information is also adverse and the bank made its credit decision based on the consumer report. B is incorrect because the information user must provide the name, address, and telephone number of the consumer reporting agency. Also, a written notice is preferable for documentation purposes. C is incorrect because it does not address the bank's need to provide an adverse action notice with the name, address, and telephone number of the consumer reporting agency. The consumer should contact the consumer reporting agency within 60 days of receiving the adverse action notice to request a free copy of the report. Note: an information user IS required to provide the report if it was used for employment purposes and contributed to an adverse action.

6. A credit applicant was denied due to information on a credit report provided by a consumer reporting agency. Specifically, the applicant had a low credit score, insufficient credit history and length of verifiable employment. Which statement best describes the bank's responsibility under the Fair Credit Reporting Act (FCRA)? A. The bank has no responsibilities under the Fair Credit Reporting Act because the credit report has no adverse credit information on it B. Orally explain to the applicant that a credit report was received, and although it contained no negative reports, there was simply too little credit history C. Give the applicant a copy of the credit report D. Notify the applicant of the adverse action. Explain that the action was in part based on a credit report and give him the name and address of the consumer reporting agency as well as his credit score and the reasons for that score

B 27A27C86849349D592F480076FA33131 Not answered. The correct answer is b. A, C, and D are incorrect. You do not have a permissible purpose to obtain a consumer report on an individual who is not personally liable for repayment of the loan unless the consumer has authorized the bank, in writing, to obtain the report.

6. A large corporation has approached your bank requesting a multi-million-dollar line of credit. Due to the amount of the loan, your chief lending officer has asked that you obtain consumer reports on all the principals of the corporation, most of whom are not personally liable for repayment of the loan. What are your options? A. You may obtain the report for safety and soundness purposes B. You can obtain written permission from the individual to obtain that report C. You may request that each principal provide a copy of their credit report to the bank D. You can obtain the report anyway, since the company is borrowing money from the bank

C 4C29A53F2FB74839AE80C5F9591C6CCE Not answered. The correct answer is c. A, B, and D are incorrect because ''opt-out'' means Janice has given direction to an entity with whom she has a relationship not to communicate to affiliates certain information about her.

6. Janice Bingham has exercised her right to opt-out of ''other'' information sharing. According to Fair Credit Reporting Act (FCRA), what does that mean? A. Affiliates can offer products or services to Janice based on information contained in her credit reports B. The bank may not share experience information with its affiliates C. Janice has directed an entity not to communicate certain information about her to its affiliates D. Janice has permitted an entity to share with affiliates both experiential and ''other'' information without restriction

A 3B84BA12314447E5A0DEB0F010B61BDF Not answered. The correct answer is a. B is incorrect because risk-based pricing notices must be provided when a lender increases a consumer's rate based on a credit report. C is incorrect because the notice must be provided when a creditor provides credit on materially less favorable terms. D is incorrect because, if the bank does not use risk-based pricing, neither a risk-based pricing notice nor a credit score exception notice is required.

6. Which statement regarding risk-based pricing notices is true? A. Risk-based pricing notices must be provided to consumer customers but are not required for business customers B. Risk-based pricing notices must be provided if, after conducting a periodic review of a consumer's credit a lender decreases a customer's annual percentage rate based on information in a consumer report C. A lender must provide a risk-based pricing notice when, based on the consumer's credit report, the creditor provides credit to the consumer on materially more favorable terms than it provides to other consumers D. A lender must always provide a risk-based pricing notice or a credit score notice even if the creditor does not use risk-based pricing

B 822E690E73A04F1AA97910DF195E5CA6 Not answered. The correct answer is b. A is incorrect because third party information may not be shared among affiliates unless the consumer has been given the opportunity to opt out and has not opted-out. C is incorrect because although consumers may receive a free copy of their credit report annually, there is no notification requirement for banks. D is incorrect because the bank must do more than just notify consumers that their information will be shared among affiliates, it must notify consumers of their ability to opt-out of certain types of information sharing.

7. What does the Fair Credit Reporting Act (FCRA) require a bank to do before sharing consumer reports with affiliates? A. Nothing is required; all consumer information may be shared without restriction among affiliates B. The bank must notify consumers of their ability to opt-out of having this information shared and provide a reasonable means for consumers to opt-out C. The bank must notify consumers of their right to obtain a free copy of their credit report D. The bank must notify consumers that their information will be shared among affiliates

B F2FB4C0EB5EE4924B11C44606D17D659 Not answered. The correct answer is b. A is incorrect because First Credit Bank does not report so it is not considered an information provider. C is incorrect because the credit bureau regularly reports consumer credit information and is an information provider. D is incorrect because although the consumer may use the information to improve his credit, the consumer is not a credit report ''user'' as defined by the FCRA.

8. First Credit Bank has made a business decision not to report credit information to the credit bureau regarding consumer credit accounts. First Credit Bank does, however, request credit reports used to evaluate the creditworthiness of loan applicants. Joe Brown, a client of the bank, receives notices when information in a consumer report results in adverse action. According to the Fair Credit Reporting Act (FCRA), which statement is true? A. First Credit Bank is an information provider B. First Credit Bank is an information user C. The credit bureau is an information user D. Joe Brown is an information user

D 6ADD38159D4449DB8B446540C6BB4609 Not answered. The correct answer is d. A, B, and C are incorrect because they are not covered by the changes to the FCRA mandated by the FACT Act.

8. The Fair and Accurate Credit Transactions Act (FACT Act) created some important requirements for consumers, banks, and CRAs. Which statement is an accurate description of one of those requirements? A. The FCRA now gives every consumer the right to a free credit report every two years B. The FCRA now requires consumers to file a police report if they suspect that they are victims of identity theft C. The FCRA now uses different state created systems of fraud detection that enhances efforts to catch identity thieves D. The FCRA now requires that banks implement a written, Board-approved program to mitigate identity theft

C E8DEB53E702341D69D968273A768D165 Not answered. The correct answer is c. A is incorrect because one of the tasks, task 2, is considered to be a consumer report. B is incorrect because a consumer report does not include the sharing of transactional information between affiliates. D is incorrect because only one of the tasks is considered to be a consumer report.

9. During the course of one loan officer's day he accomplished two tasks: (1) he called an investment officer with his bank's affiliate, Reliable Investment Services, and described Reliable Bank & Trust's experience with a deposit customer and, (2) he received a report from a credit bureau containing general credit information on a consumer who is applying for a mortgage loan. Which statement is true regarding these tasks? A. Neither task involved communications considered to be a consumer report and are therefore subject to the FCRA B. Only task 1 involved communication considered to be a consumer report and is therefore subject to the FCRA C. Only task 2 involved communication considered to be a consumer report and is therefore subject to the FCRA D. Both tasks involved communications considered to be a consumer report and are therefore subject to the FCRA

A 0563959B32A44CAC8B3D12C2F2A76CB9 Not answered. The correct answer is a. B is incorrect because this information is not required. C is incorrect because this information is not required in the FCRA notice and the credit applicant can obtain the consumer report within 60 days, not 30 days. D is incorrect because the adverse action notice would provide a statement that the consumer reporting agency did not make the credit decision.

9. Reliable Bank has denied a credit application for Jack Abernathy. The bank is required to provide an adverse action notice when a credit application is denied. The Fair Credit Reporting Act (FCRA) adverse action statement included in Mr. Abernathy's adverse action notice must include what information? A. The name, address, and telephone number of the consumer reporting agency B. A statement telling Mr. Abernathy not to apply for credit with Reliable Bank again C. A notice that Mr. Abernathy has the right to obtain a free copy of the consumer report within 30 days D. A statement that the consumer reporting agency made the credit decision

C A484394E379F493C82CE1EC0FB2FEC18 Not answered. The correct answer is c. A and B are incorrect because the institution is not a consumer reporting agency as defined by the Fair Credit Reporting Act (FCRA) since it does not regularly engage in assembling consumer credit information in order to furnish consumer reports to third parties. D is incorrect because the institution is a not a consumer.

9. Responsible Bank & Trust regularly submits information to several consumer reporting agencies regarding consumer credit accounts with its office. The institution also requests credit reports that are used to evaluate the creditworthiness of loan applicants. Which option lists two terms that could be used to describe Responsible Bank & Trust? A. Information provider and consumer reporting agency B. Consumer reporting agency and information user C. Information user and information provider D. Consumer and information user

C 1803F8BF09B34F43B631000A3978761C Not answered. The correct answer is c. A is incorrect because one of the reasons is permissible. B is incorrect because a report cannot be ordered to determine an individual's potential value as a deposit customer. However, reports may be ordered to determine eligibility for a solicitation that will result in a firm offer of credit if certain conditions are met. D is incorrect because one of the reasons is not permissible.

9. Responsible Bank & Trust requested consumer reports from a consumer reporting agency for two reasons: (1) the institution is targeting several prominent individuals in the community as potential deposit customers and orders a report on each individual and, (2) the institution requests reports on all delinquent borrowers for collection purposes. Which statement is true regarding these reasons? A. Neither reason is permissible according to the provisions of the Fair Credit Reporting Act B. Only reason 1 is permissible according to the provisions of the Fair Credit Reporting Act C. Only reason 2 is permissible according to the provisions of the Fair Credit Reporting Act D. Both reasons are permissible according to the provisions of the Fair Credit Reporting Act