Life · Chapter 7 · Underwriting Info Sources
Fair Credit Reporting Act (FCRA, 1970)
Definition
Federal law (1970) setting procedures for collecting and disclosing consumer credit and investigative information — fairness, confidentiality, accuracy, disclosure. For an investigative consumer report the insurer must give the applicant written notice that such a report may be made, within 3 days of ordering it, and on request must disclose the report's nature and scope (15 U.S.C. §1681d). If the insurer takes adverse action (declines, rates up) based on a report, it must send an adverse-action notice naming the reporting agency and telling the applicant of the right to a free copy (§1681m).
Exam tip
Timing trap: the FCRA investigative-report notice is due within 3 days after the report is ordered — not before. And a routine credit report pulled for underwriting needs no advance notice at all; it's adverse action that triggers the notice.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
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