West Virginia Mortgage Law Practice Test

West Virginia's identity theft provisions make it a deceptive or unfair practice for a consumer reporting agency to do which of the following?

1. Charge a fee for placing a security freeze on a consumer file

2. Notify consumers if a third-party request for their information has been denied

3. Release any credit information when there is a security freeze on a consumer file

4. Update consumer files on an annual basis

The correct answer is: Charge a fee for placing a security freeze on a consumer file

In West Virginia, the laws regarding identity theft are designed to protect consumers by enabling them to take proactive measures to secure their personal and financial information. One critical provision involves the ability to place a security freeze on a consumer’s credit file. This freeze restricts access to the consumer's credit report, making it substantially harder for identity thieves to open accounts in the consumer’s name. The rationale behind classifying it as a deceptive or unfair practice for a consumer reporting agency to charge a fee for placing a security freeze is rooted in consumer protection principles. The law recognizes that when individuals are victims of identity theft, they should not face additional financial barriers when trying to protect themselves from further harm. By eliminating fees for security freezes, the legislation ensures that victims can secure their financial information without incurring extra costs, thereby encouraging individuals to take essential steps to protect their identities. In contrast, the other options do not align with the key provisions typically protected under identity theft laws. For instance, notifying consumers about a denied third-party request or updating consumer files on an annual basis serve important communication and operational functions rather than placing financial burdens on the consumer. Similarly, releasing credit information while a security freeze is in place contradicts the purpose of a freeze but does not inherently violate the