ANSWER: The Fair Credit Reporting Act (FCRA) does not permit a user of a consumer report that includes an initial fraud alert to:
(i) Establish a new credit plan or extension of credit (other than an open end credit plan as defined in section 103), or
(ii) Issue an additional card on an existing credit account, or
(iii) Grant any increase in credit limit on an existing credit account,
unless the user uses reasonable policies and procedures to form a reasonable belief that the user knows the identity of the person making the request. (FCRA, Section 605(h)(1)(B)).