True or False: The FCRA's time limits on reporting data apply only to negative information; favorable information can be reported forever.

The correct understanding of the FCRA's guidelines indicates that the assertion is false. The Fair Credit Reporting Act (FCRA) imposes specific time limits on the reporting of both negative and positive information. While negative information typically has a seven-year reporting limit, certain types of positive information, such as accounts in good standing, have no defined expiration under the FCRA and can potentially be reported indefinitely, although practical limitations may exist based on individual credit reporting agency practices.

This means that while negative data must be removed after the designated period, favorable information can be retained and reported longer, depending on the context and the nature of the information. Therefore, the appropriate response to the statement regarding the time limits on reporting data in terms of positive versus negative information is that the assertion is false, as favorable information does not have a universal expiration limit like many negative entries do.