True or False: Under the FCRA, consumer reports cannot include arrest data that is older than seven (7) years.

The statement is true because the Fair Credit Reporting Act (FCRA) restricts the reporting of certain types of information, including arrest records, to a maximum of seven years. This provision is designed to protect consumers from the negative impacts of outdated or potentially irrelevant information on their creditworthiness and employment opportunities.

Arrest data specifically falls under this restriction, meaning that if an arrest occurred more than seven years ago, that information should not be included in a consumer report provided by a credit reporting agency. This helps to ensure that the consumer's report reflects their current situation rather than outdated legal issues, which may not accurately represent their present character or reliability.

It's important to note that while this prohibition generally applies, there might be variations in state laws or specific contexts (like employment) where additional rules could apply, but the foundational principle remains rooted in the seven-year limit established by the FCRA. Therefore, the correct understanding aligns with the assertion that arrest data older than seven years cannot be included in consumer reports under the FCRA guidelines.