2.7 Fair Credit Reporting Act (FCRA)

A consumer may make a written request for a complete disclosure of the nature and scope of the investigation underlying the report. Disclosure MUST be made in writing within

five days after the date on which the consumer's request was received.

Penalties

Violators of the fair credit reporting act may be subject to fines and imprisonment and may be required to pay any actual damages suffered by the consumer, punitive damages awarded by a court, and reasonable attorney's fees. The maximum penalty for obtaining consumer information reports under FALSE PRETENSES is $5,000, imprisonment for ONE year or both.

The Fair Credit Reporting Act requires consumer reporting agencies to

adopt reasonable procedures for exchanging information on credit, personnel, insurance, and other subjects in a manner that is fair and equitable to the consumer with respect to the confidentiality, accuracy, and relevancy, and property use of this information.

Consumer Rights

consumers who feel that information in their files is inaccurate or incomplete may dispute the information, and the reporting agencies may be required to reinvestigate and correct or delete information. Insurance companies may use consumer reports, or investigative consumer reports to compile additional information regarding the applicant. If applicants feel that the information compiled by the consumer inspection service is inaccurate, they may send a brief statement to the reporting agency with the correct information.

All insurers and their producers must comply with the

federal Fair Credit Reporting Act regarding information obtained from a third party concerning the applicant

A Notice to Applicant must be

issued to all applicants for life OR health insurance coverage. This notice informs the applicant that a report will be ordered concerning their past history and any other life or health insurance for which they have previously applied. The agent must leave this notice with the applicant along with the receipt.

Reports on consumers are prohibited UNLESS

the consumer is made aware that an investigative consumer report may be made, and that such report may contain information about the person's character, reputation, personal characteristics, and lifestyle.

A Notice to Applicant must be given to the consumer no later than

three days after the report was requested