South Carolina Personal Lines Practice Exam

Which law offers protections to consumers against outdated or incorrect information?

1. Truth in Lending Act

2. Fair Credit Reporting Act

3. Consumer Protection Act

4. Gramm-Leach-Bliley Act

The correct answer is: Fair Credit Reporting Act

The Fair Credit Reporting Act (FCRA) is the law that provides protections to consumers against outdated or incorrect information. It establishes the rights of consumers regarding their credit information and outlines the responsibilities of credit reporting agencies. Under the FCRA, consumers have the right to access their credit reports, dispute inaccuracies, and ensure that their personal information is handled accurately by credit reporting agencies. This law plays a critical role in promoting fair and accurate credit reporting, which is essential for consumers when they apply for loans, credit cards, and other financial products. By allowing consumers to challenge incorrect information, the FCRA helps protect their financial reputation and ensures that credit decisions are made based on accurate data. The other options address different areas of consumer protection or financial regulation, but they do not specifically focus on the accuracy of consumer information in credit reporting. For instance, the Truth in Lending Act pertains to the disclosure of credit terms, the Consumer Protection Act encompasses a broader range of consumer rights, and the Gramm-Leach-Bliley Act primarily covers financial privacy and consumer privacy regarding personal financial information.