Asked by Michelle Nunez on Apr 27, 2024
Verified
Credit Agency Corporation issues consumer credit reports. The company generally does not delete unverifiable or erroneous information from the reports. Under the Fair Credit Reporting Act, this firm may be subject to
A) finance charges.
B) damages.
C) a cease-and-desist order.
D) no sanctions.
Fair Credit Reporting Act
A federal law in the United States designed to ensure the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies.
Credit Agency Corporation
An entity that collects and provides information on the creditworthiness of individuals and businesses, influencing lending decisions.
Erroneous Information
Incorrect, inaccurate, or false data that may lead to improper decisions or conclusions.
- Recognize federal regulations concerning credit and consumer safeguards.
- Understand the entitlements of consumers as per the Fair Credit Reporting Act.
Verified Answer
ZK
Zybrea KnightMay 03, 2024
Final Answer :
B
Explanation :
Under the Fair Credit Reporting Act, companies are required to correct or delete unverifiable, outdated, or erroneous information. Failure to do so can result in the company being liable for damages to the consumer affected by the inaccurate information.
Learning Objectives
- Recognize federal regulations concerning credit and consumer safeguards.
- Understand the entitlements of consumers as per the Fair Credit Reporting Act.