Which condition triggers the prior notice and opt-out requirement?

• A. The prior notice and opt-out requirement is triggered when eligibility information received from an affiliate has been used to establish criteria to select consumers.
• B. It is triggered only when a lender requests a consumer report.
• C. It is triggered when identity theft is suspected.
• D. It is triggered when a consumer report is used to offer identical terms to all applicants.

Answer: (A)

The key idea here is prescreened offers. The prior notice and opt-out right applies specifically when a lender uses eligibility information it gets from an affiliate to set criteria that identify which consumers will receive an offer. In that situation, the consumer must be told that their information was used to prescreen them and be given the option to opt out of future prescreened offers. It isn’t triggered just by requesting a consumer report, nor by suspecting identity theft, nor by offering identical terms to all applicants. So the scenario where affiliate-provided eligibility information is used to select consumers for offers is the one that triggers this notice and opt-out requirement.