Under the Fair Credit Reporting Act, when can a person obtain a free copy of their credit report?

The correct response is rooted in the provisions of the Fair Credit Reporting Act (FCRA), which allows individuals to obtain a free copy of their credit report under specific circumstances. One of these circumstances is when a person has been subjected to adverse action, such as being denied credit, insurance, or employment based on the information in their credit report. This element of the law helps ensure consumers are informed about the information affecting their credit standing, allowing them to understand and potentially rectify any inaccuracies.

In addition to adverse action, individuals may also request a free credit report if they are victims of identity theft, which further emphasizes the FCRA's intent to protect consumers from unfair credit practices. Therefore, the option highlighting access to a free report following adverse action aligns accurately with the legal provisions intended to empower consumers and promote transparency in credit reporting.