The Fair Credit Reporting Act applies not only to consumer reporting agencies (CRAs) but also to users of consumer credit reports such as Banks. Forms facilitating CRA compliance include a Notice of Negative Information (Pre-Sharing), Notice Regarding Inaccurate Information and Disclosure of Credit Score Information, all located at the end of this Chapter.
If a Bank takes adverse action with respect to potential consumer borrower that is based in whole or in part on any information contained in a consumer credit report, the Bank must provide notice of:
•The adverse action to the consumer;
•The name, address, and telephone number (toll-free number for national CRAs) of the CRA that furnished the report;
•The fact that the CRA did not make the decision to take the adverse action and is unable to provide the consumer the specific reasons why the adverse action was taken; and
•The consumer’s right to:
o Obtain a free copy of the report from the CRA that furnished it within 60 days after receipt of the notice; and
o Dispute with a CRA the accuracy of completeness of any information in a consumer report.
When credit for personal, family, or household purposes is denied or the charge for the credit is increased in whole or part because of information obtained from a person other than a CRA bearing upon the consumer’s credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living, the user of the information must:
•Clearly and accurately disclose to the consumer at the time the adverse action is communicated to the consumer the right to make a written request for the reasons for the adverse action. (Notice of Action Taken forms which contain this notice are located at the end of this Chapter); and
•Within a reasonable period of time, upon the consumer’s written request for the reasons for the adverse action received within sixty days after learning of the adverse action, disclose the nature of the information to the consumer.