FCRA Certification of Compliance
March 27, 2018
All clients ordering consumer reports through B&B Reporting, Inc. must certify that all requests are in compliance with all applicable state and federal laws, including the Fair Credit Reporting Act (FCRA).
Client certifies that all reports requested are in connection with one of the following permissible purposes:
– As ordered by a court or federal grand jury subpoena
– Instructed by the consumer in writing
– For extension of credit due to an application by the consumer, to review consumer’s account or collection upon account
– For employment/volunteer purposes (to include hiring and promotions) with written consent of consumer
– For a legitimate business need initiated by the consumer
– For underwriting of insurance applied for by the consumer
– For review of a consumer’s account to determine whether or not consumer is meeting terms of account
– By a potential investor or servicer, or current insurer, in a valuation or assessment of the credit or prepayment risks associated with existing credit obligations.
– By state and local officials to determine child support payments or to modify and enforce said payments.
– 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.
If the requested report is used for employment purposes and the client is the end user, said client further certifies:
– Client has made a clear and conspicuous disclosure to the consumer (in writing) that a consumer report may be obtained (if application is by mail, computer or telephone, such disclosure may be oral, written or electronic).
– Client has obtained written authorization from the consumer (unless consumer applies by mail, computer or telephone).
– Client understands that there are legal requirements and responsibilities when taking adverse action based in whole or in part on consumer reports. Client understands and agrees to comply with adverse action procedures required by the FCRA including requirements to provide a preliminary adverse action notice to consumers, along with a copy of the consumer report and A Summary of Your Rights Under the Fair Credit Reporting Act.
– Client will allow the consumer a reasonable designated period of time to contact B&B if consumer wishes to dispute any information in the consumer report, providing B&B’s contact information.
– If a final adverse action decision is taken against the consumer, a final adverse action notice will be provided to the consumer along with a copy of the report and A Summary of Your Rights Under the Fair Credit Reporting Act, prior to any final adverse action.
– No information obtained will be used in violation of any state or federal equal opportunity law or regulation and B&B advises Client that they have specific legal requirements and responsibilities regarding taking adverse action against a consumer based in whole or in part on a consumer report and that Client should consult with their legal counsel regarding specific, legal responsibilities.
If client is not the end user, and the report is intended to be resold, client will do the following:
– Disclose the identity of the end-user to the source reporting agency.
– Certify the end-user has a legitimate permissible purpose to receive the report.
– Take all reasonable and appropriate measures to certify end-user is in compliance with applicable state and federal laws (to include the FCRA) as they pertain to disclosure and use of requested report.
The Fair Credit Reporting Act may be reviewed by going to: https://www.ftc.gov/enforcement/statutes/fair-credit-reporting-act
The information provided in this article is for general informational and educational purposes only, and is not a substitute for legal advice. Accordingly, before taking any actions based upon such information, we encourage you to consult with the appropriate legal professionals or licensed attorneys.