West Virginia Property and Casualty Licensing Practice Exam

When checking someone's credit, how many days must the consumer be notified in writing?

1. 3 days

2. 5 days

3. 7 days

4. 10 days

The correct answer is: 5 days

When checking someone's credit, the Fair Credit Reporting Act (FCRA) requires that if a consumer report has been obtained for any purpose related to credit or underwriting, the consumer must be notified in writing. This notification must occur within a specific timeframe, which is five days after the report has been requested. This requirement is part of the overarching goal of the FCRA to ensure transparency and fairness in the credit reporting and lending processes. It provides the consumer an opportunity to be informed about the influence of their credit report on decisions made by potential creditors, thereby empowering them to understand and potentially dispute any inaccuracies that might exist in their report. Thus, the correct answer emphasizes the importance of keeping consumers informed about their credit status and the activities involving their credit information within the specified timeframe.