Who must notify a consumer when a financial institution furnishes negative information to a nationwide consumer reporting agency?

• A. The financial institution that furnishes the information
• B. The consumer reporting agency
• C. The consumer
• D. The government

Answer: (A)

Under the Fair Credit Reporting Act, the entity that actually furnishes information about a consumer to a nationwide credit reporting agency has the duty to notify the consumer when that information is reported, especially if it is negative. This notice helps the consumer know who reported the information and when, and it typically arrives within a limited period after the furnishment. It also provides a way to verify and, if needed, dispute the data.

So, the financial institution that provides the negative information is the one responsible for sending this notice to the consumer. The credit reporting agency itself is not the one issuing the notification to the consumer about who reported the information, and the government isn’t the notifier in this context.