Fair Credit Reporting Act
Civil Liability for obtaining a consumer report under false pretenses
$1000 or actual damages, whichever is greater
Certification of Permissible Purpose
Users must provide a CRA with certificate that states the permissible purpose for which they are requesting the report
Criminal penatlies for unauthorized disclosure by officers and employer
Fined and or imprisoned for no more than 2 years
Notification to CRAs of Correction
Furnisher has a duty to correct information and to provide the corrections to all CRAs that received inaccurate inforation
Can a CRA furnish a consumer report without permissible purpose?
No
Can someone furnish information to a CRA when knowingly providing inaccurate information
No
What is the regulation for it?
Regulation V
Civil Liability for knowing noncompliance
1000 or actual damages whichever is greater
How long do furnishers have to dispute and rectify inaccuracies
30 days from the CRA's receipt of dispute
Civil Liability for negligent noncompliance
Actual damages, costs, attorney's fees
CRA
Any person who regularly engages for fees or on a cooperative nonprofit basis in the practice of assembling or evaluating consumer credit to provide to third parties
Covered Transactions
Any transaction that involves the use of credit reports, consumer investigatory reports and employment background checks
Violation for Civil Liability for Willful Noncompliance
Damages not less than $100 and not more than $1000 plus punitive damages, costs of bringing to action, and attorney's fees
Who regulates it?
CFPB
Consumer report
Communication of any information from a consumer reporting agency that relates to a consumer's credit worthiness, etc which is used in order to determine the consumer's eligibility for credit or insurance to be used for personal, family or household purposes or to evaluate a consumer for employment
Notice of Dispute
Consumer disputes the accuracy and completeness of information on a delinquent account must provide the CA with a month and year of the commencement of the delinquency
Investigative Consumer report
Consumer report containing infor about a consumer's character, reputation, personal characateristics, and mode of living
How does it protect the rights of consumers?
Creates special obligations and restrictions for CRAs
Criminal Penalties
Imprisoned for no more than 2 years
CRA Disclosure to Consumers
Must clearly and accurately disclose all info in theconsumer's file, the sources of the information, and the ID of each person that procured a consumer report
CRA notification to users
Must provide notices to any person who regularly and in the ordinary course of business furnishes information to a CRA and to any person who receives and uses a consumer report
Notification of Adverse Action
When user takes any type of adverse action based on info in a consumer report, theuser must provide the consumer with written, oral, or other which includes contact information for the CRA. Must show that the CRA did not make the decision, and consumer has right to obtain free copy of report
When was FCRA enacted and why?
in 1970 to ensure accuracy, fairness and privacy of consumer's personal information that is assembled and used by consumer reporting agencies.