Under the Fair Credit Reporting Act (FCRA), which of the following is NOT a permissible purpose for obtaining a consumer's credit report?
Correct Answer
C) To satisfy personal curiosity about a neighbor's creditworthiness
Under FCRA Section 604, permissible purposes include credit transactions, employment purposes, and account review. Personal curiosity is not a permissible purpose and violates the FCRA.
Why This Is the Correct Answer
Under FCRA Section 604, permissible purposes include credit transactions, employment purposes, and account review. Personal curiosity is not a permissible purpose and violates the FCRA.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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A mortgage broker receives $3,000 in compensation from the lender and charges the borrower an additional $2,000 origination fee. For HOEPA points and fees calculation purposes, what amount should be included?
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A real estate attorney refers clients to a specific lender and receives season tickets to sporting events. Under RESPA, this arrangement: