Chapter 9: Financial Privacy
CRA Core Requirements: Access, Accuracy, Obsolescence
CRAs must give consumers access and the right to dispute, take reasonable steps for maximum possible accuracy, and not report outdated negatives (generally account data older than seven years, bankruptcies older than ten years).
How this supports CIPP/US study
Use this lesson to separate sectoral scope, data type and regulated entity before testing an exception. Continue with the CIPP/US practice exam.
- Provide access plus a dispute process; the CRA must conduct a reasonable investigation. It may withhold credit scores and other risk scores or predictors.
- Take reasonable steps to ensure maximum possible accuracy.
- Not report outdated negatives: generally account data more than seven years old or bankruptcies more than ten years old.
Seven vs ten
Most account data drops off after seven years; bankruptcies may be reported for ten years from filing. As a practice, larger bureaus remove Chapter 13 bankruptcies after seven years, but the legal maximum for bankruptcies is ten.
Key terms - quick answers
What is “Maximum possible accuracy”?
The FCRA standard requiring CRAs to have procedures ensuring the greatest feasible accuracy of information in a consumer's report.
Sources and study method
This independent lesson uses active recall, spaced retrieval and scenario practice. Read the full study method.