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Fair Credit Reporting: 8.16.2 Other Notices
A number of other notices may be provided to furnishers of information. These notices usually relate to the reports that the furnisher has made in reference to a particular account.
Fair Credit Reporting: 8.17.1 Overview
Users of consumer reports are the end users of the information maintained within the reporting system. Because the use of this information will often determine whether a consumer will have access to goods, services, or employment opportunities, the FCRA has put in place mechanisms to ensure that the information is properly used. And in those instances when the information is suspicious or subject to dispute, the Act puts in place a series of notice requirements to ensure that information is used appropriately.
Fair Credit Reporting: 8.17.2 Notices of User’s Duties Under the Act
CRAs must provide a notice to each user of consumer reports describing their responsibilities under the FCRA.772 The form of the notice is prescribed by Regulation V, which includes a model form.773
This notice establishes that the user was informed of its legal responsibilities. It will likely appear in every contract between CRAs and their subscribers who use consumer reports.
Fair Credit Reporting: 8.17.3.1 Nature and Content of Notice
One of the most well documented causes of identity theft has been the failure of creditors and CRAs to note and take action when a new account is opened using an undocumented address. Consumer advocates had contended that both the creditors and the CRAs were in a position to immediately catch fraudulent uses of credit by noting these address discrepancies, which were apparent from the reports being requested.
Fair Credit Reporting: 8.17.3.2 Time and Manner of Notice
The provisions of the FCRA do not specify a time for the notice. Nonetheless, if the notice is to serve the function anticipated by Congress, the notice should be provided along with the requested report so as to allow the user of the report to take preventive action and avoid fraudulent use of the consumer report.
Fair Credit Reporting: 8.17.3.3 Enforcement of Notice Rights
The violation of the address discrepancy notice provision by the CRA is privately enforceable, since violations of section 1681c are not excluded from the FCRA’s private right of action. Violations are subject to the usual private remedies of the FCRA including actual damages, statutory damages, punitive damages, costs, and attorney fees.780 The failure of a CRA to provide the required notice could foreseeably lead to identity theft and harm to the consumer’s credit file.
Fair Credit Reporting: 8.17.4.1 Nature and Content of Notice
It often happens that, after a reinvestigation, a CRA refuses to delete or modify the disputed credit information. In those instances, the consumer has a remedy they can use to inform potential creditors, employers, and insurers that this information may not be reliable.
Fair Credit Reporting: 8.17.4.2 Time and Manner of Notice
The FCRA does not direct either the time or manner of the notice. However, the nature of the request and the anticipated response would dictate that the notice be given within a reasonable time and in a fashion that is reasonable under the circumstances.
Fair Credit Reporting: 8.17.4.3 Enforcement of Notice Rights
The violation of these dispute notice provisions by a CRA or user is enforceable, as violations of section 1681i are not excluded from the FCRA’s private right of action. Violations are subject to the usual private remedies of the FCRA including actual damages, statutory damages, punitive damages, costs, and attorney fees.786
Fair Credit Reporting: 12.4.2.2.1 Introduction
Consumers often do not enter into agreements with CRAs. Consequently, CRAs have limited opportunity to require arbitration as one of the terms of an agreed contract.
Fair Credit Reporting: 12.4.2.2.2 Does a credit monitoring service’s arbitration agreement apply to an affiliated CRA?
Affiliates of Experian, Equifax, and Transunion sell credit monitoring services to consumers,480 and the terms of the sale of credit monitoring services will include an arbitration requirement. CFPB data reveals that more consumers obtained credit reports through credit monitoring services than through the free official centralized source.481
Fair Credit Reporting: 12.4.2.2.3 Can a CRA take advantage of a furnisher or user’s arbitration agreement
CRAs may try to take advantage of an arbitration agreement between the consumer and another party, such as a user or a furnisher. In general, only the parties named in an arbitration agreement are bound by the agreement. For example, where an arbitration agreement requires arbitration of claims involving the creditor, its employees, its agents, or its assignees, this should not extend to a CRA.
Fair Credit Reporting: 16.3.1.2 Credit Invisibility
The vast majority of adult Americans, nearly 200 million, have a credit score, but a smaller percentage are “credit invisible.”83 A CFPB study found that about twenty-six million consumers, or 11% of the adult U.S. population, lack any file at the nationwide consumer reporting agencies.84 Another nineteen million consumers, or 8.3% of the adult U.S. population have files that are not scored due to lack of sufficient or recent activity.85
Fair Credit Reporting: 16.4.1.5 Disclosure of Non-Credit Risk Scores
The FCRA’s requirement to disclose credit scores at section 1681g(f) only requires the CRAs to disclose risk scores that predict “credit behavior.”128 This particular requirement does not require CRAs to disclose any other type of risk score, such as specialty scores;129 the FCRA’s general requirement for disclosure of consumer reports specifically exempts not only credit scores, but also “risk scores or predictors.”130 This lack of a disclosure re
Fair Credit Reporting: 16.7.3a Non-Credit Uses of Credit Scores
Credit reports and credit scores are increasingly used for non-credit purposes, such as employment328 and tenant screening.329 These non-credit uses have been criticized by advocates as inappropriate and having a disparate impact on consumers of color.330 In some cases, these uses may be a proxy for other types of screening t
Fair Credit Reporting: Introduction
Appendix I.1, infra, contains sample credit reports from the three major nationwide consumers reporting agencies—Equifax, Experian, and TransUnion. These sample reports are illustrative only and are subject to modification. Sample credit reports are available for viewing on the websites of these CRAs.1
Fair Credit Reporting: I.1.2 Experian
Please note that this report is a sample only and is subject to change.
Fair Credit Reporting: I.1.3 TransUnion
Note: This report example is only an illustration of the type of information provided on a TransUnion Personal Credit Report. The information in the report example does not reflect a particular or personal situation. You must order your TransUnion Personal Credit Report to obtain information that pertains to your personal situation. The sample TransUnion Personal Credit Report, TransUnion and the “T” logo are registered or unregistered copyrighted works, service marks or trademarks of TransUnion L.L.C. All Rights Reserved.
Fair Credit Reporting: K.3 Alterative II: Correcting the Status of an Account, But Retaining Information About the Account
The following is proposed settlement language that would require the creditor to request correction of a disputed credit account, but would leave the account listed in the consumer’s credit reporting file. This option is recommended only when there is a significant benefit to the client in maintaining information about the account, for it is far more likely to raise post-settlement problems.
Fair Credit Reporting: K.2 Alternative I: Deleting All Mention of the Debt
The following is proposed settlement language that would require the creditor to request deletion of all reference to a disputed debt in a consumer’s credit reporting file where complete deletion is preferable to amendment of the information:
Fair Credit Reporting: List of Consumer Reporting Agencies and Other Database Companies
The following list of companies and their addresses was provided courtesy of Florida attorney Leo Bueno, with additions from a list published by the Consumer Financial Protection Bureau.1 Note that this list is a work in progress and is not meant to be a comprehensive list of all consumer reporting agencies. In the past few years, there has been some consolidation of the consumer reporting industry, so some of the companies listed may have merged, may have been bought, or no longer exist.