Under the Fair Credit Reporting Act, which statement is true?

The Fair Credit Reporting Act (FCRA) is designed to protect consumer information in reporting and ensures that individuals can manage the accuracy of their credit reports. Among the provisions of this act, individuals must be informed if they are adversely affected by information contained in a credit report.

When an insurance application is denied based on information obtained from a consumer reporting agency, it is required that the consumer be notified of this denial. This is to ensure that consumers are aware of the information that has affected their insurance eligibility and provides them with the opportunity to review that information. Notification allows consumers to request further details about the report used and to take action if they find any inaccuracies.

By requiring that consumers be advised if their insurance has been denied due to information from a credit report, the FCRA supports transparency and fairness in credit reporting practices.