Question

According to the Fair Credit Reporting Act, what is NOT a valid need for information from a consumer credit reporting agency?

A. For the purpose of processing a credit application.
B. In connection with a court order.
C. In response to a request from the consumer.
D. For marketing purposes.

Answer 1

According to the Fair Credit Reporting Act, information from a consumer credit reporting agency is not needed for marketing purposes.

Step-by-step explanation:

The Fair Credit Reporting Act (FCRA) regulates the collection, use, and disclosure of consumer credit information by credit reporting agencies. According to the FCRA, it is NOT a valid need for information from a consumer credit reporting agency for marketing purposes (option D). The other options are valid needs for information under the FCRA.

Option A: Processing a credit application is a valid need for information from a consumer credit reporting agency. Lenders need relevant credit information to assess an individual's creditworthiness.

Option B: Information can be requested from a consumer credit reporting agency in connection with a court order. This allows the court to access credit reports as part of legal proceedings.

Option C: It is a valid need for information if a consumer requests their own credit report. Consumers have the right to access their credit information for monitoring and verification purposes.