Module 3

FinCEN

Financial Crimes Enforcement Network

Consumer Report/Credit Report

Any written, oral or other form of communication of any information from a consumer's creditworthiness, credit standing, credit capacity, character, and general reputation which is used or expected to be used as a part of a decision to extend credit.

Credit Score

A numerical value derived from a statistical tool used as part of the determinations as to a consumer's likelihood of certain credit behaviors. The credit score is also referred to as a risk predictor of risk score.

Active Duty Alert

a notification in a consumer's credit file designed to alert someone using in the military and most likely deployed. The alert is a component of the Red flag Identity Theft program.

The following identifying information is not required for the Customer Identification Program (CIP).

Gender

Consumer Reporting Agency

Regularly engages in the practice of assembling or evaluating and maintaining data for the purpose of furnishing consumer reports to third parties.

Credit scores range from:

300 to 850

Customer

A consumer with a continuing relationship with a financial institution.

The following statement is not correct relating to the Red Flag program: A red flag indicates the possibility of identity theft A mortgage broker is exempt from red flag requirements Financial institutions must develop a written program that identifies and detects the relevant warning signs or "red flags" of identity theft The FTC has published 26 possible Red Flag items that can be incorporated within a written plan

A mortgage broker is exempt from red flag requirements

What is the Safeguard Rule?

A rule issued by the FTC that requires companies to have measures to keep customer information safe

consumer

An individual who obtains or has obtained a financial product or service from a financial institution for personal, family, or household reasons.

The Fair Credit Reporting Act (FCRA) regulates consumer reporting agencies. The law is Title 6 of the ______ __________ ________ _______. It limits bankruptcies reporting to_____ years and other derogatory credit for ___ years.

Consumer Credit Protection Act, 10, 7

A consumer reporting agency must do the following once they receive a verified call indicating fraud against a consumer for whom the consumer reporting agency maintains a file: Include a fraud alert in the file of that consumer and also provide that alert along with any credit score generated in using that file for a period on not less than seven years beginning on the date of the request Immediately included a fraud alert for a minimum of seven years Refer the information regarding the fraud alert to the FBI Include a fraud alert in the file of that consumer and also provide that alert along with any credit score generated in using that file for a period of not less than 1 year beginning on the date of the request

Include a fraud alert in the file of that consumer and also provide that alert along with any credit score generated in using that file for a period of not less than 1 year beginning on the date of the request

A privacy notice must include all of the following EXCEPT: Explain how it protects and safeguards the information Include what information the company collects about its customers and/or consumers, and with whom it shares information Indicate that the policy is a vehicle to protect public information Be a clear, conspicuous and accurate statement of the company's privacy practices

Indicate that the policy is a vehicle to protect public information.

Red flag

a red flag is a pattern, practice, or specific activity that indicates the possible existence of identity theft.

The Bank Secrecy Act addresses:

money laundering