FACT Act

The FACT Act requirements for disposal of consumer information include:

Adding the definition of "consumer information" to the existing customer information disposal procedures

An active duty alert is:

Notice included in a consumer report indicating that the subject of the report is or was on active duty

Under the FACT Act, hose who furnish information to consumer reporting agencies do NOT need to:

Provide a consumer notice

Which are FACT Act requirements designed to prevent identity theft or lessen its consequences?

-A consumer reporting agency must notify the person requesting a consumer report of any address discrepancy -If a consumer provides sufficient information, the consumer reporting agency must include a fraud alert in the consumer report -If a consumer reporting agency must block information that is the result of identity theft, it must notify the person who provided that information

ct all answers that are NOT considered a consumer report.

-A financial institution that shares information strictly related to its own transactions or experiences with a consumer -Communications of transaction or experience information among persons, including financial institutions related by common ownership or affiliated by corporate control -Communications of other information among persons and financial institutions related by common ownership or affiliated by corporate control

When adverse action is taken based on any information contained in a consumer report, the financial institution must provide the consumer with:

-written notice of the adverse action to the consumer The name, address, and telephone number of the consumer reporting agency from which it received the information -A statement that the consumer reporting agency did not make the decision to take the adverse action -A notice of the consumer's right to obtain a free copy of the consumer report from the consumer reporting agency

Prior to taking any adverse action involving employment that is based on the consumer report, the user generally must provide the consumer with:

A description in writing of the rights of the consumer under the Act A copy of the report

According to the FACT Act amendments to the FCRA, when consumer reporting agencies provide disclosures to the consumer as required under the FCRA, they must also include:

A summary of the consumer's rights under the FCRA and some other information intended to help the consumer enforce those rights

The federal financial institution regulatory agencies are directed to issue guidelines about the _________ of the information that the institutions provide to consumer reporting agencies:

Accuracy and integrity

Federal financial institution regulatory agencies have issued guidelines about the:

Accuracy and integrity of the information the institutions provide to consumer reporting agencies

The FCRA requires that any user of a consumer report must have a legally permissible purpose for using the report, such as:

As a response to a federal grand jury subpoena Employment Insurance

A consumer reporting agency does NOT have to block all information from its report that results from an alleged identity theft. However, the agency has to notify the person who furnished the blocked information that it may be the result of identity theft.

F

A lender is allowed to use the fact that the applicant may be ill when making credit decisions.

F

A lender receives notice from a consumer reporting agency notifying it of a block in a consumer report related to information the lender supplied about a particular consumer. Until someone proves to the lender that the information is incorrect, the lender has no obligations regarding the information.

F

Although consumer reporting agencies are required to provide notice of address discrepancies to persons who request consumer reports, the persons who receive those notices have no obligation to act on them.

F

Credit reporting agencies do NOT need to supply the consumer's credit score upon a consumer's request.

F

Financial institutions must be considered a consumer reporting agency in order to be subject to the requirements of the FACT Act.

F

Stealing a person's checkbook and forging that person's signature on checks made payable to you is an example of identity theft.

F

The FACT Act does NOT require financial institutions to provide notices with each written solicitation made to consumers using pre-screened consumer reports.

F

The FACT Act has provisions that encourage lenders, for safety and soundness reasons, to sell off debt that is the product of identity theft.

F

The FACT Act states that it is permissible to sell or transfer debt if you have received notice that the debt is the result of identity theft as long as you notify the consumer within 30 days.

F

The FCRA states that a person, including a financial institution, has to specify an address for receipt of notices from consumers concerning inaccurate information.

F

The federal financial institution regulatory agencies are NOT required to issue guidelines and regulations that specify how financial institutions are to deal with the risk of identity theft.

F

The goal of the FCRA is to ensure that lenders are treated fairly.

F

Under the FCRA, customers must be given an opportunity to opt out when information to be shared is related to a bank's own transaction or experience information.

F

The __________ is a federal statute that imposes restrictions and requirements on consumer reporting agencies. (Hint - use the acronym)

FCRA

A person who is deployed on active duty in military service and is unable to monitor his or her credit file for possible identity theft has which option under the FACT Act?

Having an active duty alert included in any consumer reports

With respect to the disposal of consumer information:

Interagency guidelines dictate the level of care that an institution must use in disposing of the information

Anyone who uses a consumer report in connection with an application for credit on material terms that are materially less favorable than the most-favorable terms available to a substantial portion of consumers must provide a notice to the consumer which:

Is provided after a credit decision is made, but before consummation Contains information described in Regulation V States that the terms offered to the consumer have been set based on information in the credit report All of the above

If a person who requests a consumer report receives notice from the consumer reporting agency that there is a discrepancy between the consumer's address in the request and the consumer's address in the consumer report, the lender:

Must form a reasonable belief that a consumer report relates to the consumer in question

If a lender receives a consumer report that contains a fraud alert, the lender:

Must not extend the credit unless it believes it knows the identity of the person requesting it

A financial institution that furnished negative information about a consumer to a nationwide consumer reporting agency:

Must provide the consumer with a notice that the institution has furnished negative information

If a consumer reporting agency receives a request for a consumer report and the address provided for the subject is different from the address in the report, the consumer reporting agency:

Must report the discrepancy to the person requesting the report

Procedures to prevent re-circulation of blocked information include:

Notifying the person who furnished the blocked information that it may be the result of identity theft A consumer reporting agency blocking any information from its report that is the result of an alleged identity theft, if the consumer supplies certain information

Select all that apply. Permitted options with respect to supplying the notice of negative information include:

Supplying it only to persons about whom you actually supply negative information, immediately upon supplying the negative information Supplying it in advance to all applicants, whether or not you actually supply negative information about all of them

An institution can comply with the negative information notice requirement by providing a notice to applicants, whether or not any actual negative information will be provided to the nationwide consumer reporting agency.

T

If a consumer reporting agency is obligated to block information because of identity theft, it is also obligated to send notice of the block and possible identity theft to the person who furnished the information.

T

If an individual's credit score is affected because of the number of inquiries made, the FACT Act requires that this must be reported to the consumer on the credit report.

T

One of the goals of the FACT Act is to mitigate the consequences of identity theft.

T

The prior notice and opt-out requirement is triggered when eligibility information received from an affiliate has been used to establish criteria to select consumers.

T

A consumer reporting agency must include a fraud alert in a consumer report if:

The consumer has provided the agency with an identity theft report

An "opt-out" is best defined as an opportunity for:

The consumer to request that information not be shared with affiliates

The lender is required to provide a Notice to the Home Loan Applicant when:

The customer applies for a purchase money loan to buy a duplex that will function as his principal dwelling (he will rent out the other half), and the lender relies on a credit score in denying the application

The best definition of identity theft is:

Using identifying information about someone else in order to perpetrate a fraud

Consumer reporting __________ __________ prohibit agencies from furnishing a consumer report containing consumer medical information. (Hint - two words)

agency limitations

The FCRA requires that any prospective user of a consumer's information have a permissible purpose to obtain a:

consumer report Investigative consumer report

__________ __________ prohibit a creditor from considering certain consumer information when determining credit eligibility. (Hint - two words)

creditor limitations

The __________ __________ rules prohibit a creditor from considering a consumer's physical, mental, or behavioral condition when determining credit eligibility. (Hint - two words)

medical information

Consumers must have the __________ to opt out of an entity's use of information received from an affiliate to make solicitations to the customer.

opportunity

An __________-out is an opportunity for the consumer to request, in writing, that information is not shared with affiliates.

opt