Is a financial institution that reports to a CRA considered a furnisher under the FCRA?

Prepare for the Fair Credit Reporting Act (FCRA) Test with targeted questions and explanations. Hone your understanding of FCRA regulations and principles. Ace your exam confidently!

A financial institution that reports to a Credit Reporting Agency (CRA) is indeed considered a furnisher under the Fair Credit Reporting Act (FCRA). A furnisher is defined in the FCRA as any entity that provides information about consumers to CRAs. This includes financial institutions that report data regarding consumers' credit performance, payment history, and account status.

When a financial institution reports information, whether it is positive or negative, about a consumer's credit activities to a CRA, it is performing the role of a furnisher. This obligation is critical because furnishers must provide accurate and complete information under the FCRA, and they have a responsibility to investigate disputes regarding the accuracy of the information they provide to CRAs.

The other choices address specific conditional circumstances that do not fully encapsulate the definition of a furnisher as laid out in the FCRA. For example, the stipulations that a financial institution is only a furnisher for negative information, or that they must provide consumer access, do not align with the broader definition of a furnisher. The mere act of reporting information, regardless of its nature, establishes the status of being a furnisher.

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