Loan Officer Practice Exam 2025 – Comprehensive All-in-One Guide for Exam Success!

Question: 1 / 415

A consumer reporting agency must place a security freeze on a credit report no later than how many business days after receiving a request with proper identification?

10

30

5

1

A consumer reporting agency is required by law to implement a security freeze on a credit report within one business day of receiving a request, provided that the request includes proper identification. This prompt action is designed to protect consumers from identity theft and fraud by restricting access to their credit reports, which can help prevent the opening of new accounts or loans in their name without their consent.

When an individual requests a security freeze, they are typically doing so to ensure that their personal information is not misused. The law mandates this quick turnaround to offer immediate protection, reflecting the urgency of the situation for consumers who may be facing potential identity theft.

The other timeframes presented are significantly longer than what is stipulated by law, which emphasizes the importance of rapid response in safeguarding personal credit information.

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