Asked by Konica Pandya on Mar 10, 2024
Verified
If a credit bureau issues a consumer credit report for a reason not specified by the Fair Credit Reporting Act,the credit bureau may be subject to a "cease-and desist" order; however,it may not be held liable for damages.
Credit Bureau
An agency that collects and maintains individual credit information, providing credit reports to creditors to aid in the decision-making process.
Cease-And-Desist
A legally enforceable order issued by a court or government agency directing a person or entity to stop an alleged illegal activity.
Fair Credit Reporting Act
Federal law that regulates the collection, dissemination, and use of consumer credit information, ensuring accuracy, privacy, and fairness.
- Understand the principles and requirements of credit reporting acts.
Verified Answer
CS
caitlin sullivanMar 10, 2024
Final Answer :
False
Explanation :
The Fair Credit Reporting Act regulates the issuance of credit reports for limited business purposes,such as a determination of credit or insurance eligibility,employment,and licensing.If a credit bureau issues a consumer credit report for a reason not specified by the Fair Credit Reporting Act,it may be held liable for damages and additional fines.
Learning Objectives
- Understand the principles and requirements of credit reporting acts.