Which is NOT a requirement of the FCRA when a financial institution provides negative information to a consumer reporting agency?

The correct choice reflects that financial institutions are not required to provide notification to the consumer only if requested by the consumer. Under the Fair Credit Reporting Act (FCRA), when a financial institution reports negative information to a consumer reporting agency, it is obligated to adhere to certain requirements that ensure transparency and accountability in the reporting process.

The law mandates that institutions must accurately report information, and if negative information is reported, they generally have to notify the consumer in writing to inform them about this negative reporting. This notification has to occur within a specified timeframe, typically within 30 days after the information is reported, which is to ensure that consumers are aware and can take necessary steps if they need to dispute the information.

The requirement to notify consumers is proactive and is meant to create awareness, not contingent upon any request from the consumer. This ensures that consumers have the opportunity to understand the impact of the negative information reported and allows them to address any inaccuracies or issues that may arise from it. Hence, the option indicating that institutions can notify only if requested does not align with the proactive requirements set forth by the FCRA.