Once a credit report for indivuduals or buisiness is pulled and used in approving or denying a loan, if the applicant asks for a copy, can the bank provide it? I have read through FACTA, but I need something more, thank you

Here's my response to staff when asking about giving out credit reports. I've copied it from responses on here BOL, I think from Andy Z or John B.


This has actually been allowed in the FCRA, predating FACTA.

Section 607(c) of the FCRA says:
"Disclosure of consumer reports by users allowed. A consumer reporting agency may not prohibit a user of a consumer report furnished by the agency on a consumer from disclosing the contents of the report to the consumer, if adverse action against the consumer has been taken by the user based in whole or in part on the report."

Some argue that "disclosing" doesn't mean giving a copy, but that it may be done orally. I say the FCRA isn't specific and this is a gray area at best.

But do you want to?

The report has lots of info. The customer may ask how to read it, what the numbers mean, and use you to dispute a debt (complain about it in any case) that isn't controlled by you. I wouldn't want to argue with a customer that the report is or is not accurate. You can't speak about other items that may be on the report. You also do not want to give out your subscriber numbers which may be at the top. And if this has someone else's data on it, such as a co-borrowers info, you could have issues. You also need to verify ID. If I use your name and SSN and get denied and you haven't verified that I was who I said I was, you’ve now given me tons of info on you, opening a can of identity theft worms.

So you can, but do you want to? Referring them to the CB gives them a current, free, easier to read report and someone to ask questions of and who can resolve erroneous reports. Also, if they want to enter a comment, they can do that with the CB, not you.

The FACT Act allows for banks to give applicant's a copy of their credit report and must provide the credit “score” for real estate secured loans. Generally though, it is my understanding that the agreement between the bank and CB prohibits the bank from providing the full report directly.

The CB would prefer the applicants to request their credit reports from them because the report will be in a much more reader friendly format and a lot less confusing to a every day citizen. Consumers are also allowed free access to their credit reports from each CB annually. See www.annualcreditreport.com. Consumers may also request by phone or mail.