Primary goal of the FCRA
To ensure the accuracy, fairness, and privacy of consumers’ personal information that is assembled and used by consumer reporting agencies
FCRA is also known as
Regulation V
Transactions FCRA applies to
Any transaction that involves the use of credit reports, consumer investigatory reports, and employment background checks.
Requirements for bankruptcies in consumer reports
- Report states which chapter of bankruptcy
2. Report indicates fact that a bankruptcy file was withdrawn before completion
Requirements for credit inquiries in consumer reports
- Must state if number of inquiries resulted in adverse action
- Must state if customer voluntarily closed a credit account
Requirements for address discrepancies in consumer reports
- CRA must notify requestor of report if address differs substantially
Bankruptcies more than X years old must be excluded from consumer reports
10 years
Civil lawsuits more than X years old must be excluded from consumer reports
7 years (unless statute of limitations has not expired)
Arrest records more than X years old must be excluded from consumer reports
7 years (unless statute of limitations has not expired)
Accounts placed on collection more than X years old must be excluded from consumer reports
7 years
True or false:
Conviction of a crime can always be reported, no matter how long
True
When do consumer reporting limits not apply:
- Debt transactions with a principal balance of at least $150k
- Life insurance of at least $150k
- Employment background checks if employee will receive salary of at least $75k
FICO score weightings
Payment history: 35% Amounts owed: 30% Length of credit history: 15% Types of credit used: 10% New credit: 10%
