FCRA Basic Certification 2025 – 400 Free Practice Questions to Pass the Exam

The correct answer is that consumers cannot sue state and local governments under the Fair Credit Reporting Act (FCRA) for inaccuracies in court records regarding convictions or judgments. The FCRA primarily governs how consumer reporting agencies can collect, use, and communicate consumer information.

Under the FCRA, consumers have the right to dispute incorrect information on their credit reports, and they can take legal action against consumer reporting agencies for violations related to these inaccuracies. However, the law does not extend this right of action to state or local governments regarding court records. Therefore, if a consumer realizes that there are inaccuracies in public records maintained by state or local governments, they cannot pursue legal action against those entities under the FCRA for those inaccuracies.

The other options hint at circumstances that are not aligned with the protections under the FCRA—the act does not differentiate between types of government nor allow lawsuits against them based on the nature of the misconduct involved.