Certified Information Privacy Professional – United States (CIPP/US) — Question 128

How did the Fair and Accurate Credit Transactions Act (FACTA) amend the Fair Credit Reporting Act (FCRA)?

Answer options

• A. It expanded the definition of “consumer reports” to include communications relating to employee investigations
• B. It increased the obligation of organizations to dispose of consumer data in ways that prevent unauthorized access
• C. It stipulated the purpose of obtaining a consumer report can only be for a review of the employee’s credit worthiness
• D. It required employers to get an employee’s consent in advance of requesting a consumer report for internal investigation purposes

Correct answer: B

Explanation

The correct answer is B because FACTA introduced stricter requirements for organizations regarding the disposal of consumer data to prevent unauthorized access, enhancing consumer protection. Options A, C, and D do not accurately reflect the amendments made by FACTA to the FCRA, as they focus on different aspects of consumer reporting and employee investigations.