Are consumers entitled to a free credit report if their application is denied based on a credit report?

• A. Yes, they may obtain a free credit report if the decision was based on a credit report.
• B. No, they must pay for every report
• C. Only if they sue
• D. Only for mortgage decisions

Answer: (A)

When a lender makes a decision based on information in a consumer report and takes adverse action (like denial of credit), the consumer has a right to see that report for free. The FACT Act, building on the FCRA, requires lenders to provide an adverse-action notice and to offer the consumer a free copy of the report from the credit reporting agency (usually within 60 days of the notice). This helps the consumer review the information for accuracy and dispute any errors. This free copy is specifically tied to the denial or adverse action, not the general yearly free-report benefit that some consumers can request separately from the reporting agencies. So, yes—the consumer may obtain a free credit report when the decision was based on a credit report.