Under the Fair Credit Reporting Act, when can agencies include applicant information about bankruptcies older than 10 years?

Under the Fair Credit Reporting Act (FCRA), there are specific guidelines regarding how long certain negative information, such as bankruptcies, can remain on a consumer's credit report. Generally, bankruptcies are allowed to remain on a credit report for up to ten years. However, there are exceptions where this duration can be extended, particularly when the application process involves significant financial transactions.

The correct choice highlights that if an applicant is seeking a transaction greater than $150,000, agencies may include information about bankruptcies that are older than ten years. This provision aims to ensure that lenders have a comprehensive view of an applicant's financial history, especially when the stakes are higher and the risk to the lender is greater. In larger financial transactions, lenders are more entitled to scrutinize an applicant's past financial behavior to make informed decisions about creditworthiness.

This exception acknowledges that significant financial transactions may warrant a deeper investigation into an applicant's background, thus allowing the inclusion of older bankruptcy records.