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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.”82 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.83 Another nineteen million consumers, or 8.3% of the adult U.S.

Fair Credit Reporting: 16.4.1.1 Which CRAs Are Required to Disclose Credit Scores

The FCRA requires consumer reporting agencies to disclose credit scores to consumers upon their request, for a fee.99 A CRA is required to disclose a credit score if the CRA either: (1) distributes scores that are used in connection with residential real property loans or (2) develops scores that assist credit providers in understanding the general credit behavior of a consumer and predicting the future behavior of the consumer.100

Fair Credit Reporting: 16.4.1.3 Price of a Credit Score

The CRAs may charge a fee for the credit score, as determined by the CFPB.114 Previously, this authority was granted to the FTC.115 The FTC issued an Advanced Notice of Proposed Rulemaking (ANPR) in 2004, in which the agency appeared to be considering setting the fee at a price similar to the prices charged in the unregulated market, which the FTC cited as from about four to eight dollars.116

Fair Credit Reporting: 16.4.1.4 What Scores Are Required to Be Disclosed

The FCRA requires that the credit score disclosed by the CRAs must either (a) be generated using a scoring model that is widely distributed to users by the CRA in connection with residential real property loans or (b) assist the consumer in understanding the assessment by the credit scoring model of their credit behavior and predications about that behavior.121 The second option permits CRAs to disclose credit scores that are not used by lenders at all.

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.”127 This particular requirement does not require CRAs to disclose any other type of risk score, such as specialty scores;128 the FCRA’s general requirement for disclosure of consumer reports specifically exempts not only credit scores, but also “risk scores or predictors.”129 This lack of a d

Fair Credit Reporting: 16.4.1.6 How to Obtain a Credit Score

Consumers who wish to obtain their credit scores for a fee can go to the FICO website, which offers a number of different FICO score products to consumers. Consumers can purchase a copy of their FICO score based on either their Equifax, Experian, or TransUnion file, or they can purchase all three scores. Consumers can also get their credit reports from one or all of these CRAs when they buy their FICO scores from the myfico.com website.132

Fair Credit Reporting: 16.4.3.1 When Required

The FCRA requires mortgage lenders who use credit scores in connection with an application for residential real-estate secured credit to provide, free of charge, certain credit scoring information. This requirement applies to both open-end and closed credit secured by one- to four-family residential real estate, including purchase and refinance transactions.146 This requirement applies regardless of the final action taken by the lender on the application.

Fair Credit Reporting: Pennsylvania

Child Support Debts Statute: 23 Pa. Cons. Stat. Ann. § 4303.

State shall report any child support arrearages provided that obligor is given notice and a period of up to twenty days to contest the accuracy of the information.

Credit Repair Statute: 73 Pa. Stat. Ann. §§ 2181 to 2192 (West).

Fair Credit Reporting: Puerto Rico

Child Support Debts Statute: P.R. Laws Ann. tit. 8, § 528.

Child Support Administration shall report child support arrears to consumer reporting agencies. Obligors must be notified prior to release of information and notified that they have ten days to either pay the debt or challenge the report (with opportunity to present evidence).

Credit Repair Statute: P.R. Laws Ann. tit. 7, §§ 631 to 631aa.

Fair Credit Reporting: New Jersey

Child Support Debts Statute: N.J. Stat. Ann. § 2A:17-56.21 (West).

The state Department of Human Services shall report child support arrearages to consumer reporting agencies. The Department must give obligor prior notice and an opportunity to contest the accuracy of the information.

Data Security Breach Statute: N.J. Stat. Ann. § 56:8-163 (West).

Fair Credit Reporting: New Mexico

Child Support Debts Statute: N.M. Stat. Ann. § 56-3-3.

Child Support Enforcement Division may obtain credit reports for use in locating obligors and enforcing obligations. Division must furnish to credit bureau, on request, the judgment or case number for the obligation for which a report is requested.

Credit Information in Personal Insurance Statute: N.M. Stat. Ann. §§ 59A-17A-1 to 59A-17A-11.

Scope: Use of credit information in personal insurance.

Fair Credit Reporting: New York

Child Support Debts Statute: N.Y. Soc. Serv. Law § 111-c(2)(h) (McKinney).

Each social services district shall report periodically to CRAs information regarding past-due support owed by the parent owing support, including amount of the delinquency. A social services official, at least ten days prior, must provide notice to parent obligor, including the opportunity to be heard, and the methods available for contesting the accuracy of the information.

Fair Credit Reporting: North Carolina

Credit Information in Personal Insurance Statute: N.C. Gen. Stat. Ann. § 58-36-90. See also N.C. Gen. Stat. §§ 58-39-1 to 58-39-76.

Scope: Credit reports or credit scores used in non-commercial insurance underwriting (i.e., residential or non-commercial vehicle).

Fair Credit Reporting: North Dakota

Child Support Debts Statute: N.D. Cent. Code § 50-09-08.4.

Enforcement agencies may report past due support amounts provided obligors given notice and a reasonable opportunity to contest the accuracy of the report first.

Credit Information in Personal Insurance Statute: N.D. Cent. Code §§ 26.1-25.1-01 to 26.1-25.1-11.

Scope: Credit information used in underwriting personal insurance, i.e., policies individually underwritten for personal, family or household purposes.

Fair Credit Reporting: Oklahoma

Child Support Debts Statute: Okla. Stat. tit. 56, § 240.7.

Department of Human Services shall report child support arrearages to consumer reporting agencies. Obligors must be notified prior to the release of the information and be given a reasonable opportunity to contest the accuracy of the information.

Credit Information in Personal Insurance Statute: Okla. Stat. tit. 36, §§ 950 to 959.

Fair Credit Reporting: Oregon

Child Support Debts Statute: Or. Rev. Stat. § 25.650.

The Department of Justice shall provide information on child support arrearages to consumer reporting agencies, but first the obligor parent must be notified and given opportunity to contest accuracy of information. Department of Justice shall promptly notify agency when obligor pays off previously reported arrearage.

Credit Information in Personal Insurance Statute: Or. Rev. Stat. §§ 746.650, 746.661.

Fair Credit Reporting: West Virginia

Child Support Debts Statute: W. Va. Code § 48-18-121.

Those in arrears for child support payments must be provided procedural due process, including notice and a reasonable opportunity to contest accuracy of information, prior to state reporting such arrearages to consumer reporting agencies. State child support enforcement agency must give consumer ten days’ notice prior to requesting report and must use report solely to establish consumer’s capacity to make child support payments.

Fair Credit Reporting: Wisconsin

Child Support Debts Statute: Wis. Stat. § 49.22(11).

Department of Public Assistance shall report child support arrearages, but must give twenty business days prior notice to obligor and disclose methods available to contest accuracy of information. Department must report any errors or payments within thirty days and reporting agency must correct consumer files within thirty days.

Credit Repair Statute: Wis. Stat. §§ 422.501 to 422.506.

Fair Credit Reporting: Wyoming

Child Support Debts Statute: Wyo. Stat. Ann. § 20-6-106(w). See also Wyo. R. & Regs. 049.0009.8 § 2.

Child support delinquencies shall be reported to CRAs. Obligor shall be sent advance notice via first class mail and may request administrative review.