State RegulationsAZ specificDifficulty 1/5
Under the federal Fair Credit Reporting Act (15 USC 1681), what is a consumer report?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
The federal Fair Credit Reporting Act (15 USC 1681) governs consumer reports: information compiled by a consumer reporting agency bearing on a consumer's credit worthiness, credit standing, character, or reputation, used as a factor in determining eligibility for credit, insurance, or employment. Producers who order such reports for insurance underwriting must follow the Act's notice and use requirements.
Why the other options are wrong
- A) An email from a prospect is correspondence between the parties, not information compiled by a consumer reporting agency.
- C) A producer's own sales notes are business records created by the producer, not a regulated consumer report.
- D) A shareholder list is corporate ownership information, not consumer credit or character data.
Memory hook
Agency-compiled credit and character data = consumer report under 15 USC 1681.