Which act defines what information from consumer reports can be used, by whom, and when?

• A. Fair Debt Collection Practices Act
• B. Fair Credit Billing Act
• C. Fair Credit Reporting Act
• D. False Claims Act

Answer: (C)

This question tests understanding of who can access consumer reports and for what purposes. The Fair Credit Reporting Act defines what information from consumer reports can be used, by whom, and when. It sets permissible purposes (like evaluating a loan application, conducting employment screening with consent, or screening a potential tenant) and requires proper authorization for most uses, along with restrictions on who may receive the report and under what conditions. It also protects consumers’ rights, such as notification of adverse actions and mechanisms to correct inaccuracies.

The other acts govern different areas: the Fair Debt Collection Practices Act regulates how debt collectors behave; the Fair Credit Billing Act covers resolving billing errors on credit accounts; and the False Claims Act addresses fraud against the government.