Financial Privacy
What are the CRA's obligations under the FCRA?
(1) Provide consumers access to information contained in their report and opportunity to dispute (2) Take reasonable steps to ensure maximum possible accuracy (3) Not report negative information that is outdated (4) Provide consumer reports only to entities (users) that have a permissible purpose (5) Maintain records regarding entities that receive consumer reports
What are the furnishers obligations under the FCRA?
(1) Provide only accurate information to CRA• (2) Implement reasonable procedures to respond to identity theft (3) Notify consumer within 30 days after providing negative information to CRA. Notify the CRA if: • Information provided is not accurate • If any information is being disputed by the consumer •If account has been voluntarily closed by consumer • Delinquency of an account within 90 days
What are the users obligations under the FCRA?
(1) User must provide the permissible purpose for which the report is being obtained and certify to CRA that it will not be used for any other purpose. (2) User must provide consumer notice when adverse action is taken, including: Contact information of the CRA ,Explain that CRA wasn't the decision maker, Free disclosure of file upon consumer request to CRA, and an Ability to dispute any inaccuracy
What is a CRA?
A credit reporting agency is any person or entity that compiles or evaluates personal information for the purpose of furnishing consumer reports to third parties for a fee.
What is a consumer report?
A consumer report is any communication by a CRA related to an individual that pertains to the person's: (1) creditworthiness, (2) credit standing, (3) credit capacity, (4) character, (5) general reputation, (6) personal characteristics, or (7) mode of living
What are the permissible purposes under the FCRA?
A permissible purpose is a legitimate reasoning for any user to access a consumer report. Below are examples of permissible purposes. (1) Extension of credit (2) Employment purposes (where consumer has given permission) (3) Insurance underwriting (4) As instructed by consumer
Who does the FCRA apply to?
Any credit reporting agency, user, furnisher, or consumer utilizing a consumer report.
What is the CFPB?
The Consumer Financial Protection Bureau (CFPB) oversees the relationship between consumer and providers of financial products. CFPB can bring actions against unfair and deceptive acts as well as enforce against abusive acts and practices. (Similar to FTC)
What is the FCRA?
The Fair Credit Reporting Act (FCRA) protects information collected by consumer reporting agencies such as credit bureaus, medical information companies and tenant screening services. Information in a consumer report cannot be provided to anyone who does not have a purpose specified in the Act.
What is the FACTA?
The Fair and Accurate Credit Transactions Act (FACTA) was enacted in 2003 as an amendment to the FCRA. It helps to regulate the handling of consumer account info to prevent identity theft. This includes truncating credit card info, explanation of credit score, disposal requirements, and red flags rule.
What is the GLBA?
The Graham-Leach-Bliley Act (GLBA) is an act that applies only to financial institutions, such as banks, to store financial information in a secure way (Safeguards rule) and provide clear, conspicuous notice on an annual basis.