True or False: If an institution determines it has provided incorrect information to a CRA, it must notify the agency promptly.

The statement is true. Under the Fair Credit Reporting Act (FCRA), if a financial institution learns that it has reported incorrect information to a Consumer Reporting Agency (CRA), it has a responsibility to notify the agency promptly. This requirement ensures that the information held by CRAs is accurate and up-to-date, which is essential for maintaining the integrity of consumer credit reports. Timely notification allows for corrections that can prevent consumers from facing negative consequences due to incorrect data, such as being unfairly denied credit or facing higher interest rates. This obligation to act quickly highlights the importance placed by the FCRA on protecting consumers and ensuring their right to accurate credit reporting.

The other options do not align with the requirements outlined in the FCRA. Specifically, there isn't a stipulation that notification is only necessary upon a consumer's request or limited to specific situations. The duty to notify is general and encompasses all instances of discovered incorrect reporting.