New York Child Abuse Identification and Reporting Practice Exam

Which law makes it prosecutable to obtain consumer information reports under false pretenses?

1. Consumer Protection Act

2. Fair Credit Reporting Act

3. Insurance Information Privacy Protection Act

4. Truth in Lending Act

The correct answer is: Fair Credit Reporting Act

The Fair Credit Reporting Act (FCRA) is the law that makes it prosecutable to obtain consumer information reports under false pretenses. This act was enacted to promote the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. It specifically addresses the misuse of consumer reports and outlines the legal boundaries regarding how these reports can be accessed and utilized. Under the FCRA, obtaining consumer information through deception or false pretenses is a violation, which can lead to legal repercussions. This provision is important as it helps protect consumers from identity theft and other fraudulent activities that can result from unauthorized access to their personal financial information. The FCRA ensures that consumer information is only obtained for permitted purposes and by legitimate entities, reinforcing trust in the credit reporting system. In contrast, the other laws listed do not focus specifically on the legality of obtaining consumer information reports under false pretenses. The Consumer Protection Act addresses broader issues related to consumer rights and unfair trade practices, the Insurance Information Privacy Protection Act pertains specifically to insurance information and privacy rights, and the Truth in Lending Act focuses on promoting informed consumer borrowing by requiring disclosures about loan terms. Each of these laws has its own objectives, but none specifically target the fraudulent obtaining of consumer reports like the FCRA does