PSI Ohio Insurance Practice Exam

Obtaining consumer information reports under false pretenses is prosecutable by which of the following?

1. Fair Credit Reporting Act

2. Consumer Protection Act

3. Data Privacy Law

4. Credit Repair Organizations Act

The correct answer is: Fair Credit Reporting Act

The Fair Credit Reporting Act (FCRA) is designed to promote the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies. It establishes the legal framework for how consumer reports can be obtained and used. The act specifically addresses the consequences of obtaining consumer reports under false pretenses, making such actions a violation of the law that can lead to significant penalties. This means that if someone knowingly misrepresents themselves or the intended use of the information to obtain a consumer report, they can be prosecuted under this federal legislation. While the other options involve consumer rights and protections, they do not specifically address the issue of fraudulently obtaining consumer information reports. The Consumer Protection Act focuses on broader consumer rights but does not have the precise provisions regarding consumer reporting that the FCRA does. Data Privacy Laws concern the broader management of personal data but may not provide the same specific regulatory framework related to consumer reports as seen in the FCRA. Meanwhile, the Credit Repair Organizations Act regulates credit repair services but doesn’t target the unlawful acquisition of consumer reports directly. Therefore, the Fair Credit Reporting Act is the most appropriate and relevant answer for prosecuting fraudulent activities relating to consumer information reports.