CRCM practice question 11 of 35

A consumer reporting agency may furnish a consumer report

Answer options

A: If not authorized in writing by the consumer

B: In response to a court order having jurisdiction or a subpoena issued by a federal grand jury or review or collection of an account of the consumer Correct answer

C: In connection with a credit or insurance transaction Correct answer

D: For employment purposes Before procuring a consumer report, an employer Must disclose to the individual in writing that a consumer report may be obtained Must obtain written authorization from the individual before procuring the report Correct answer

Correct Answer:

B. In response to a court order having jurisdiction or a subpoena issued by a federal grand jury or review or collection of an account of the consumer; C. In connection with a credit or insurance transaction; D. For employment purposes Before procuring a consumer report, an employer Must disclose to the individual in writing that a consumer report may be obtained Must obtain written authorization from the individual before procuring the report

Explanation

Under the Fair Credit Reporting Act (15 U.S.C. §1681b) a consumer reporting agency may furnish a report (1) in response to a court order or a federal grand-jury subpoena or for review/collection of an existing account (§1681b(a)(1), (3)(A)); (2) for any credit or insurance transaction involving the consumer (§1681b(a)(3)(A)&(C)); and (3) for employment purposes provided the employer has first given a written disclosure and obtained the consumer’s written authorization (§1681b(b)(2)). No permissible-purpose provision allows release “if not authorized” by the consumer standing alone, so A is incorrect.

Why Incorrect

A. FCRA never permits furnishing solely because the consumer has NOT authorized it; the statute lists specific permissible purposes.

References

1. Fair Credit Reporting Act, 15 U.S.C. §1681b(a)(1), (3)(A), (3)(B); §1681b(b)(2).

2. Consumer Financial Protection Bureau, “FCRA Permissible Purposes” Summary, Compliance Aid, p.2 (2022).

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