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rrr
4 Posts |
 Posted - 07/05/2008 : 3:18:34 PM
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| What law prohibits giving the customer a copy of their credit report? |
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hherrm
1407 Posts |
Posted - 07/05/2008 : 3:24:21 PM
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| Kroll Factual Data has a consumer copy that you can give to the client. It does not show the social, only the last 4 digits and gives information on what to do in case of dispute. |
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rrr
4 Posts |
Posted - 07/05/2008 : 3:42:44 PM
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| Thanks for the response, however my company does not use Kroll. I keep hearing from others that by law, you cannot give the customer a copy of their report. However, no one has been able to tell me which law states this. |
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SoCalRay
2698 Posts |
Posted - 07/05/2008 : 4:09:07 PM
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FCRA states has to come from a credit reporting agency.
You are not a credit reporting agency.
Most credit providers have the same consumer report as kroll now.
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rrr
4 Posts |
Posted - 07/05/2008 : 4:17:12 PM
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| Thanks for the info. Do you by any chance know where in FCRA I can find the exact verbage regarding this? |
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TransNet
523 Posts |
Posted - 07/05/2008 : 4:43:35 PM
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quote:
Originally posted by rrr
Thanks for the response, however my company does not use Kroll. I keep hearing from others that by law, you cannot give the customer a copy of their report. However, no one has been able to tell me which law states this.
There is no law, at least Federal law, that prohibits an originator from giving a customer a copy of their credit report. In fact there is a Federal law that specifically permits it.
What you are hearing from others is based on two ideas that no longer apply. It used to be thought that providing a copy of a credit report to a consumer turned the company that provided the report into a credit provider since they were "providing" the credit report to the consumer. It was thought that this might put some obligation on the lender to help the consumer correct any mistakes on the report since they were acting as a credit reporting agency by providing the report. This was later specifically addressed by either a change in the law or a staff opinion by the FTC that this wasn't the case, I can't remember exactly which, it's been a while since I looked at that.
The second problem with providing a consumer a copy of their credit report didn't have to do with a law but with the contracts that lenders or users of credit reports enter into with credit reporting agencies. These contracts typically prohibited the credit report user from reselling the credit report or even providing it to the consumer. The FACT Act addressed this issue and specifically prohibited credit reporting agencies from prohibiting lenders from providing credit reports to consumers, at least under certain circumstances. That is why credit reporting agencies have started providing consumer copies. A similar prohibition by credit reporting agencies on disclosing credit scores was also addressed in the FACT Act and not only can credit scores be disclosed to the consumer in mortgage credit applications, they are required to be disclosed.
Regarding disclosure of consumer reports by users (lenders) to consumers:
http://www.fdic.gov/regulations/laws/rules/6500-1100.html#6500607
§ 607. Compliance procedures
"(c) DISCLOSURE OF CONSUMER REPORTS BY USERS ALLOWED.--A consumer reporting agency may not prohibit a user of a consumer report furnished by the agency on a consumer from disclosing the contents of the report to the consumer, if adverse action against the consumer has been taken by the user based in whole or in part on the report."
Regarding disclosure of credit scores:
http://www.fdic.gov/regulations/laws/rules/6500-1100.html#6500609
§ 609. Disclosures to consumers
"(2) PROHIBITION ON DISCLOSURE CLAUSES NULL AND VOID.--"
"(A) IN GENERAL.--Any provision in a contract that prohibits the disclosure of a credit score by a person who makes or arranges loans or a consumer reporting agency is void."
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rrr
4 Posts |
Posted - 07/05/2008 : 5:13:26 PM
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Thank you so much for your reply. I had just read both the sections of the FCRA that you quoted and thought that I was interpreting it correctly, but when you hear so many others saying "nay, nay", you begin to question your judgement. I have argued that we have for sometime been able to give a customer a copy of their report, but had so many others tell me I couldn't, but also couldn't tell me where it was "written" that I couldn't. Again, thank you for providing such factual data.
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TransNet
523 Posts |
Posted - 07/05/2008 : 5:27:40 PM
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You are welcome.
I found the information regarding the FTC staff opinion regarding the user of a report (a lender for example) giving a consumer a copy of their report does not make the user (lender) a credit reporting agency.
http://www.fdic.gov/regulations/laws/rules/6500-2700.html#6500part600sgp
"3. Provision of Credit Report to Report Subject"
"A consumer report user does not become a consumer reporting agency by regularly giving a copy of the report, or otherwise disclosing it, to the consumer who is the subject of the report, because it is not disclosing the information to a "third party."" |
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