Under the Fair Credit Reporting Act, which statement is accurate regarding notification when a credit report is ordered?

• A. The credit report can be ordered without any notice.
• B. When a credit report is ordered, the applicant must be notified verbally and in writing.
• C. Applicants have no right to obtain a copy of the report.
• D. Credit reporting agencies may charge unlimited fees to obtain the report.

Answer: (B)

Notification is required whenever a consumer report may be used in a decision about a person, and the requester must obtain the individual's written authorization. This ensures the applicant knows a report will be pulled and can review or dispute its contents if needed. The statement that the applicant must be notified verbally and in writing captures the dual aspect of the process: a clear written disclosure that a report may be obtained, and the consent that accompanies it. The other options miss important protections: there is notice required before a report is obtained, applicants do have a right to obtain a copy of the report from the reporting agency, and fees charged by agencies are not unlimited.