E. Other Federal Laws and Guidelines 2. Fair Credit Reporting Act (FCRA)/Fair and Accurate Credit Transactions Act (FACTA)

f. Information included in a FACTA disclosure

His current credit score or the most recent credit score previously calculated by the CRA for a purpose related to the extension of credit The range of possible scores under the model used All key factors adversely affecting his credit score The date on which the credit score was created The notice to home loan applicants shown on the next page, including the name, address and telephone number of each CRA providing a credit score that was used

g. Lenght of time a bankruptcy will show on a credit history

A CRA can report negative information up to seven years, subject to the following exceptions: Information about a lawsuit or an unpaid judgment against the consumer can be reported for seven years or until the statute of limitations runs out, whichever is longer. Bankruptcy information may be reported for 10 years. There is no time limit on reporting information: o about criminal convictions; o in response to an application for a job with a salary of more than $75,000; or o in response to an application for more than $150,000 worth of credit or life insurance.

b. Information included in a "consumer report"

A consumer report is any written, oral or other communication of any information by a CRA: bearing on a consumer's creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics or mode of living; and to be used in establishing eligibility for credit or insurance to be used primarily for personal, family, household or employment purposes.

a. Definition of a "fraud alert"

A fraud alert is a clear and conspicuous statement in a consumer's file that notifies all prospective users of a consumer report relating to the consumer that the consumer may be a victim of fraud, including identity theft.

d. Requirement to develop policies and procedures regarding identity theft

FACTA requires the three major CRAs to allow consumers to obtain a free copy of their own credit report every 12 months so they have an opportunity to discover and correct errors in their credit records and make sure that accounts have not been fraudulently opened in their names. Upon request, the CRA must disclose to the consumer everything in his report, including medical information and, in most cases, the sources of the information, and must provide a list of everyone who requested his report within the past year (or two years for employment-related requests). To help ward off identity theft, retailers are required to hide credit card and debit card information on customer receipts. Only the last five digits of a card number can be listed. All cash registers and pointof-sale terminals must print these safeguarded receipts. Consumers have the right to "opt-out" and block solicitations from affiliates of companies with whom they do business. A financial institution must notify a consumer if: it grants him credit at less favorable terms than those received by most other consumers; or it will report or does report any negative information to the credit bureaus. This notification requirement makes it easier for the consumer to learn about and remove fraudulent information from his credit report. Disposal Rule. Under the rule, businesses are required to take reasonable and appropriate measures to dispose of sensitive information derived from consumer reports and records to protect against "unauthorized access to or use of the information." Such measures might include: burning, pulverizing or shredding papers containing the information. destroying or erasing electronic files or media containing the information. conducting due diligence prior to hiring a document-destruction contractor to dispose of the information.

c. Permissible times when a credit report may be accessed

Only people with a legitimate business need, as recognized by the FCRA, can get a copy of a consumer's report. For example, a company is allowed to get a report if someone applies for credit, for insurance, for employment or to rent an apartment. In a loan transaction, the borrower, the underwriter and the closer would be entitled to a copy of the borrower's report, but the seller would not.