The FACT Act does NOT require financial institutions to provide notices with each written solicitation made to consumers using pre-screened consumer reports.

• A. True
• B. False
• C. Cannot be determined
• D. Only for some solicitations

Answer: (B)

When a financial institution uses information from a consumer report to pre-screen someone for a credit offer, the law requires a brief notice to accompany each written solicitation. This notice explains that the offer was generated based on information in the consumer’s report and it provides a clear way to opt out of future offers (such as a toll-free number or an online option). The opt-out option remains in effect for five years.

So, the statement that notices are not required is false. These notices are required with every pre-screened solicitation of credit (and certain insurance offers). The main idea is transparency and giving consumers a straightforward way to stop future solicitations.