Fair Credit Reporting Act

The Consumer Financial Protection Bureau (CFPB) has issued Consumer Financial Protection Circular 2024–06, titled, ‘‘Background Dossiers and Algorithmic Scores for Hiring, Promotion, and Other Employment Decisions.’’ In this circular, the CFPB responds to the question, ‘‘Can an employer make employment decisions utilizing background dossiers, algorithmic scores, and other third-party consumer reports about workers without adhering to the Fair Credit Reporting Act (FCRA)?’’

The Bureau of Consumer Financial Protection (Bureau) is issuing this advisory opinion to highlight that a consumer reporting agency that uses inadequate matching procedures to match information to consumers, including name-only matching (i.e., matching information to the particular consumer who is the subject of a consumer report based solely on whether the consumer’s first and last names are identical or similar to the names associated with the information), in preparing consumer reports is not using reasonable procedures to assure maximum possible accuracy under section 607(b) of the Fair

The Consumer Financial Protection Bureau (Bureau) is issuing this advisory opinion to outline certain obligations of consumer reporting agencies and consumer report users under section 604 of the Fair Credit Reporting Act (FCRA).

The Consumer Financial Protection Bureau (CFPB or Bureau) is issuing this advisory opinion to affirm that, when preparing consumer reports, a consumer reporting agency that reports public record information is not using reasonable procedures to assure maximum possible accuracy under section 607(b) of the Fair Credit Reporting Act (FCRA) if it does not have certain procedures in place. For example, it must have procedures that prevent reporting of information that is duplicative or that has been expunged, sealed, or otherwise legally restricted from public access.

The Consumer Financial Protection Bureau (CFPB or Bureau) is issuing this advisory opinion to address certain obligations that consumer reporting agencies have under section 609(a) of the Fair Credit Reporting Act (FCRA). This advisory opinion underscores that, to trigger a consumer reporting agency’s file disclosure requirement under FCRA section 609(a), a consumer does not need to use specific language, such as ‘‘complete file’’ or ‘‘file.’’ This advisory opinion also highlights the requirements regarding the information that must be disclosed to a consumer under FCRA section 609(a).

States play an important role in the regulation of consumer reporting. State laws that are not ‘‘inconsistent’’ with the Fair Credit Reporting Act (FCRA) are generally not preempted by that statute. The FCRA also expressly preempts certain categories of State laws. This interpretive rule clarifies that FCRA’s express preemption provisions have a narrow and targeted scope. States therefore retain substantial flexibility to pass laws involving consumer reporting to reflect emerging problems affecting their local economies and citizens.

Model Consumer Credit Act (1973) (325 pages) builds on NCLCs 1970 National Consumer Act (NCA).  It is also a response to the inadequacies of the Uniform Consumer Credit Code drafted by the National Commissioners on Uniform State Laws (now the Uniform Laws Commission). While covering many of the same topics as the NCA, it has more extensive treatment of assignee attempts to cut off liability, door-to-door sales, credit card errors, credit reporting, and injunctions and class actions.

This is a November 14, 2014, letter from a number of consumer groups and law firms representing consumers to the Director of FHFA concerning the fact that that Fannie Mae’s and Freddie Mac’s then current guidelines regarding the treatment of credit reporting disputes impinges on the rights of consumers under the Equal Credit Opportunity Act (ECOA). More importantly, lenders who reject applicants because of disputed tradelines because they are unwilling to manually underwrite the loan appear to be directly violating the ECOA.

Landlords use tenant screening reports to evaluate rental applications. This September 2023 NCLC report is based on an analysis of 253 responses from attorneys and tenant advocates about tenant screening problems. The report examines the survey results, provides an in-depth analysis of tenant screening problems identified by the survey, and makes recommendations for change. The report responds to an FTC and CFPB call for information on tenant screening.

Debt buyers, debt collectors, and others who furnish information to credit reporting agencies have a variety of obligations under the Fair Credit Reporting Act (FCRA) and Regulation V. The Consumer Financial Protection Bureau (CFPB) issues this bulletin to highlight one of those obligations—the obligation of furnishers to investigate disputed information in a consumer report. The CFPB is concerned that, when a furnisher responds to a consumer’s dispute, it may, without conducting an investigation, simply direct the consumer reporting agency (CRA) to delete the item it has furnished.