Consumer Notice

FCRA Notice to Users

All users of consumer reports must comply with all applicable regulations. Information about applicable regulations currently in effect can be found at the Consumer Financial Protection Bureau’s website, www.consumerfinance.gov/learnmore.

The Fair Credit Reporting Act (FCRA), 15 U.S.C. 1681-1681y, requires that this notice be provided to inform users of consumer reports of their legal obligations. State law may impose additional requirements. The text of the FCRA is set forth in full at the Consumer Financial Protection Bureau's Website at www.consumerfinance.gov/learnmore. Users must consult the relevant provisions of the FCRA for details about their obligations under the FCRA.

1. OBLIGATIONS OF ALL USERS OF CONSUMER REPORTS

1.1 Users Must Have a Permissible Purpose.

Congress has limited the use of consumer reports to protect consumers' privacy. All users must have a permissible purpose under the FCRA to obtain a consumer report. Section 604 contains a list of the permissible purposes under the law. These are:

A. As ordered by a court or a federal grand jury subpoena. Section 604(a)(1)
B. As instructed by the consumer in writing. Section 604(a)(2)
C. For the extension of credit as a result of an application from a consumer, or the review or collection of a consumer's account. Section 604(a)(3)(A)
D. For employment purposes, including hiring and promotion decisions, where the consumer has given written permission. Sections 604(a)(3)(B) and 604(b)
E. For the underwriting of insurance as a result of an application from a consumer. Section 604(a)(3)(C)
F. When there is a legitimate business need, in connection with a business transaction that is initiated by the consumer. Section 604(a)(3)(F)(i)
G. To review a consumer's account to determine whether the consumer continues to meet the terms of the account. Section 604(a)(3)(F)(ii)
H. To determine a consumer's eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant's financial responsibility or status. Section 604(a)(3)(D)
I. For use by a potential investor or servicer, or current insurer, in a valuation or assessment of the credit or prepayment risks associated with an existing credit obligation. Section 604(a)(3)(E)
J. For use by state and local officials in connection with the determination of child support payments, or modifications and enforcement thereof. Sections 604(a)(4) and 604(a)(5)

1.2 Users Must Provide Certifications.

Section 604(f) prohibits any person from obtaining a consumer report from a consumer reporting agency (CRA) unless the person has certified to the CRA the permissible purpose(s) for which the report is being obtained and certifies that the report will not be used for any other purpose.

1.3 Users Must Notify Consumers When Adverse Actions Are Taken.

The term "adverse action" is defined very broadly by Section 603. "Adverse actions" include all business, credit, and employment actions affecting consumers that can be considered to have a negative impact. If a user takes any type of adverse action based at least in part on information contained in a consumer report, Section 615(a) requires the user to notify the consumer.
The notification must include:

  1. The name, address, and telephone number of the CRA that provided the report.
  2. A statement that the CRA did not make the adverse decision and is not able to explain why the decision was made.
  3. A statement setting forth the consumer's right to obtain a free disclosure of the consumer's file from the CRA if the consumer makes a request within 60 days.

1.4 Users Have Obligations When Fraud and Active Duty Military Alerts are in Files.

When a consumer has placed a fraud alert or an active duty military alert with a nationwide consumer reporting agency, Section 605A(h) imposes limitations on users of reports obtained from the consumer reporting agency under certain circumstances.

1.5 Users Have Obligations When Notified of an Address Discrepancy.

Section 605(h) requires nationwide CRAs to notify users when the address for a consumer provided by the user in requesting the report is substantially different from the addresses in the consumer's file. Users must comply with regulations specifying the procedures to be followed.

1.6 Users Have Obligations When Disposing of Records.

Section 628 requires that all users of consumer report information have in place procedures to properly dispose of records containing this information.

2. CREDITORS MUST MAKE ADDITIONAL DISCLOSURES

  1. If a person uses a consumer report in connection with an application for, or a grant, extension, or provision of, credit to a consumer on material terms that are materially less favorable, the person must provide a risk-based pricing notice to the consumer.
  2. Section 609(g) requires a disclosure by all persons that make or arrange loans secured by residential real property and that use credit scores. These persons must provide credit scores and other information about credit scores to applicants.

3. OBLIGATIONS OF USERS WHEN CONSUMER REPORTS ARE OBTAINED FOR EMPLOYMENT PURPOSES

3.1 Employment Other Than in the Trucking Industry.

If information from a CRA is used for employment purposes, the user must: A. Make a clear and conspicuous written disclosure to the consumer that a consumer report may be obtained. B. Obtain from the consumer prior written authorization. C. Certify to the CRA that the above steps have been followed. D. Before taking an adverse action, provide a copy of the report to the consumer as well as a summary of consumer's rights.

3.2 Employment in the Trucking Industry.

Special rules apply for truck drivers where the only interaction is by mail, telephone, or computer. Consent can be provided orally or electronically. An adverse action may be made orally, in writing, or electronically.

4. OBLIGATIONS WHEN INVESTIGATIVE CONSUMER REPORTS ARE USED

Investigative consumer reports are obtained through personal interviews by a CRA.
A user must disclose to the consumer that an investigative consumer report may be obtained. They must also certify to the CRA that the required disclosures have been made.

5. SPECIAL PROCEDURES FOR EMPLOYEE INVESTIGATIONS

Section 603(x) provides special procedures for investigations of suspected misconduct by an employee. These investigations must comply with specific procedures.

6. OBLIGATIONS OF USERS OF MEDICAL INFORMATION

Section 604(g) limits the use of medical information obtained from CRAs. The user must obtain the consumer's consent.

7. OBLIGATIONS OF USERS OF "PRESCREENED" LISTS

Sections 603(l), 604(c), 604(e), and 615(d) describe the obligations when using prescreened offers of credit or insurance.

8. OBLIGATIONS OF RESELLERS

8.1 Disclosure and Certification Requirements.

Section 607(e) requires any person who obtains a consumer report for resale to disclose the identity of the end-user.

8.2 Reinvestigations by Resellers.

Under Section 611(f), if a consumer disputes the accuracy of information in a report, the reseller must determine if this is a result of an action or omission on its part.

8.3 Fraud Alerts and Resellers.

Section 605A(f) requires resellers to include fraud alerts they receive in their reports.

9. LIABILITY FOR VIOLATIONS OF THE FCRA

Failure to comply with the FCRA can result in enforcement actions as well as private lawsuits.

Remedying the effects of Identity Theft

You are receiving this information because you have notified a consumer reporting agency that you believe that you are a victim of identity theft. For more information, visit www.consumerfinance.gov/learnmore.

Rights Summary

  1. You have the right to ask that nationwide consumer reporting agencies place fraud alerts in your file.
  2. You have the right to free copies of the information in your file (your “file disclosure”).
  3. You have the right to obtain documents relating to fraudulent transactions made using your personal information.
  4. You have the right to obtain information from a debt collector.
  5. You have the right to ask that a consumer reporting agency block information from your file.
  6. You may prevent businesses from reporting information about you if you believe the information is a result of identity theft.
  7. Consumers have the right to obtain a security freeze on their credit report.

Learn more

To learn more about identity theft and how to deal with its consequences, visit www.consumerfinance.gov/learnmore.

A summary of your rights under the Fair Credit Reporting Act

The federal Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. For more information, including information about additional rights, go to www.consumerfinance.gov/learnmore.