The guidance focuses on consumer reporting agencies’ requirements for file disclosures and background screenings.
01/11/2024 1:20 P.M.
1.5 minute read
The Consumer Financial Protection Bureau has issued two advisory opinions addressing requirements of consumer reporting agencies (CRAs) under the Fair Credit Reporting Act.
The first advisory opinion (PDF) focuses on requirements CRAs have related to file disclosures and consumer requests for their file under Section 609(a) of the FCRA
“This advisory opinion underscores that, to trigger a consumer reporting agency’s file disclosure requirement under FCRA [S]ection 609(a), a consumer does not need to use specific language, such as ‘complete file’ or ‘file,’” according to the CFPB.
It also highlights requirements on information CRAs must disclose to a consumer under FCRA section 609(a).
“In addition, this advisory opinion affirms that consumer reporting agencies must disclose to a consumer both the original source and any intermediary or vendor source (or sources) that provide the item of information to the consumer reporting agency under FCRA section 609(a),” the CFPB reports.
These file disclosure requirements ensure that consumers can review their files and, if they include any inaccurate information, file a dispute.
For more information on disputes, ACA members can access the following ACA SearchPoint documents:
- Direct Disputes from Consumers to Furnishers Under the FCRA (PDF)
- Duties of Collectors for Disputes Under the FDCPA and FCRA (PDF)
The bureau’s second advisory opinion (PDF) focuses on CRA requirements related to background screening requirements.
It affirms that a CRA that reports public record information must have the following procedures in place to ensure maximum accuracy under the FCRA:
- Prevent reporting information that is duplicative or that has been expunged, sealed, or otherwise legally restricted from public access.
- Include any existing disposition information if it reports arrests, criminal charges, eviction proceedings, or other court filings.
The advisory opinion also notes several timing requirements when including adverse information in consumer reports.
The CFPB’s advisory opinion program is designed to provide written guidance to assist regulated entities in understanding legal and regulatory obligations.
Remember, subscribe to ACA Daily and Member Alerts under your My ACA profile when logged in to acainternational.org to receive updates on the ACA Huddle.