Which federal regulation limits the duration that adverse collection information may appear on a consumer's credit report?

The correct choice is connected to the Fair Credit Reporting Act (FCRA), which is implemented by Regulation V. This regulation specifically governs the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. One of its key provisions is the limitation on how long adverse collection information can remain on a consumer's credit report, which is generally seven years from the date of the delinquency that led to the collection account.

By adhering to this timeframe, Regulation V ensures that negative information does not linger indefinitely, allowing consumers to have a fair opportunity to improve their creditworthiness over time. This is crucial for individuals seeking loans, as their credit report significantly influences lending decisions.

The other regulations mentioned do not address the duration of adverse collection information on credit reports. Regulation C relates to Home Mortgage Disclosure Act requirements, Regulation B implements the Equal Credit Opportunity Act aimed at preventing discrimination in lending, and Regulation Z covers the Truth in Lending Act, focusing on disclosure of credit terms. Each has a specific purpose but does not impact the timeline for reporting adverse collection information as Regulation V does.