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#2192456 - 09/13/18 04:01 PM model disclosures
complyorelse Offline
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I am trying to figure out if the new model forms are something banks are required to provide to consumers. Section 609 refers to the actual CRAs disclosure requirements.

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#2192496 - 09/13/18 06:38 PM Re: model disclosures complyorelse
Indy Banker Offline
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It looks like they made a few changes to the model form in Appendix K. I believe this notice must be given when taking adverse action when using credit report information for employment purposes, but I need to re-look at this regulation. If that's the case we may need to see where our H.R. manager gets the form they use.

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#2192542 - 09/13/18 10:51 PM Re: model disclosures complyorelse
rlcarey Online
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They get it from the credit agency as an attachment to the credit report. Assuming you are ordering them as employment CRs and not just pulling them through the credit platform. If that is the case, then you have problems.
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#2192557 - 09/14/18 12:27 PM Re: model disclosures complyorelse
lcc Offline
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So along the same lines, what happened to FCRA Section 609(c)(3)? It is referenced in 604(b)(1)(B), but when I try to find it, there is nothing. It also references 1681g(c)(3) and that also doesn't exist. What I am trying to determine is if banks are still required to give the "Summary of Rights" disclosure to consumers when employment is denied based on information in the consumer report, or if the requirement to give the disclosure is on the consumer reporting agency.

In the FDIC's exam manual, it states "Prior to taking any adverse action involving employment that is based in whole or in part on the consumer report, the user generally must provide to the consumer:
1. A copy of the report; and
2. A description in writing of the rights of the consumer under this title, as prescribed by the FTC under section (609)(c)(3)."

Here is that reference again to 609(c)(3).

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#2192562 - 09/14/18 01:01 PM Re: model disclosures complyorelse
rlcarey Online
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rlcarey
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It was deleted in 2003 by the FACT Act.

The responsibility for the deliver of this notice to the consumer and employers rest solely with the CRA.

Preamble: For production and delivery to employers, the Bureau estimates minimal additional costs under the interim final rule. Under the FCRA, employers must be provided a copy of the Summary of Consumer Rights disclosure by a consumer reporting agency before the consumer reporting agency furnishes a consumer report for employment purposes, unless the consumer reporting agency already provided a copy of the disclosure to that employer.

Every employment credit report that I have ever seen automatically includes this notice to the employer with every credit report delivered.
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#2192566 - 09/14/18 01:07 PM Re: model disclosures complyorelse
lcc Offline
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Thank you for this information!

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#2192570 - 09/14/18 01:23 PM Re: model disclosures complyorelse
lcc Offline
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So just to confirm, the requirement to provide the Summary of Rights is on the consumer reporting agencies, but banks will need to confirm with their HR departments that the credit reports obtained for employment purposes contain the Summary of Rights disclosure and that HR provides the consumer report, with the disclosure, to the applicant?

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#2192573 - 09/14/18 01:34 PM Re: model disclosures complyorelse
rlcarey Online
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rlcarey
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In the event that you plan on taking adverse action on an employment applicant based on the credit report, you would provide the applicant with a copy of the credit report - that also includes the Summary of Rights - provided to you by the CRA before actually taking any adverse action.
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#2192596 - 09/14/18 02:18 PM Re: model disclosures complyorelse
lcc Offline
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Thank you!

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#2192686 - 09/14/18 08:23 PM Re: model disclosures complyorelse
Indy Banker Offline
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Yes, our HR Dept uses a nationwide employment-services firm (no names here, but their name consists of three letters smile for pre-employment screening and they are providing the disclosure as necessary. Haven't checked to see if they updated it to comply with the revised model form.

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#2193385 - 09/21/18 05:43 PM Re: model disclosures complyorelse
It's Fun To Be in Compliance! Offline
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This change is not limited to HR, correct?

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#2193394 - 09/21/18 06:09 PM Re: model disclosures It's Fun To Be in Compliance!
rlcarey Online
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rlcarey
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Originally Posted By It's Fun To Be in Compliance!
This change is not limited to HR, correct?


What do you mean? Under what other circumstance would this even touch a creditor?
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#2195137 - 10/10/18 07:25 PM Re: model disclosures rlcarey
In It Together Offline
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How would a loan applicant receive the Summary?

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#2195211 - 10/11/18 03:27 PM Re: model disclosures complyorelse
rlcarey Online
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rlcarey
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Why does a loan applicant have to receive the summary?
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#2195246 - 10/11/18 06:10 PM Re: model disclosures complyorelse
Tarhe Offline
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Our CRO is saying that we need to provide this disclosure with our Risk Based Pricing Notice. Based on the above, the bank has no obligation to provide it at all for a credit request. CRO is also asking if we need to "verify" that the credit bureau is providing the notice to applicants - that's not our responsibility, is it? As a creditor, do we have any responsibility at all to provide or follow up or ensure that a loan applicant gets this? The above implies it is only required to employment applicants.

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#2195247 - 10/11/18 06:23 PM Re: model disclosures Tarhe
rlcarey Online
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rlcarey
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Originally Posted By Tarhe
Our CRO is saying that we need to provide this disclosure with our Risk Based Pricing Notice.


I would be asking them for some support for that statement. That is so far out there - I am left a little speechless. A loan applicant does not get this disclosure, either from the CRA or the creditor.
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#2195257 - 10/11/18 07:09 PM Re: model disclosures complyorelse
Tarhe Offline
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California
Thank you.

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#2198567 - 11/17/18 12:00 AM Re: model disclosures complyorelse
ComplyMI Offline
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People ask questions because they really don't understand something or want an answer, not because they are stupid.

I don't find the responses I read here to be at all supportive. For new posters and people still getting their arms around compliance need help and I for one don't need my questions to be answered with a question three times.

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#2198575 - 11/17/18 07:22 AM Re: model disclosures complyorelse
rlcarey Online
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rlcarey
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The original question and citations for the requirements of this notice were provided in the beginning of this thread. There is no regulatory support for providing this summary to loan applicants. It is a question that cannot be answered unless they go back to person making this claim for their reasoning. Sometimes, there are no answers possible without more information. Welcome to BOL and sorry you feel the way that you do. Since we are all here voluntarily and this is a free service, sometimes those of us that have been involved since the beginning choose to teach people to fish rather than handing them a meal. If you have posted a question that you don't feel that has been answered, please let us know and we would be glad to look at it again,. As far as not being responsive in this specific thread, I see three different "thank you" posts in this thread, so apparently we were not that bad smile
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#2198597 - 11/19/18 02:19 PM Re: model disclosures ComplyMI
Adam Witmer Offline
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Originally Posted By ComplyMI
People ask questions because they really don't understand something or want an answer, not because they are stupid.

I don't find the responses I read here to be at all supportive. For new posters and people still getting their arms around compliance need help and I for one don't need my questions to be answered with a question three times.

Yeah, the threads here take a bit of getting used to, but they really are a fantastic free resource once you get the hang of them. Like Randy said, everyone here is a volunteer, so you will get varying responses.

A bit of background: For those of us answering questions, we often realize that an answer could vary significantly depending on the situation, so we sometimes ask for clarification so that we can give a correct answer. Personally, I would rather ask a question for clarification than to give an answer that could potentially be wrong (depending on the specifics of the situation). When I was new to compliance, the hardest part for me was to know what I didn't know. Now that I have been doing compliance for some time, I still find that to be true.

Welcome to BOL, ComplyMI, and I hope you stick around as many have found these forums to be invaluable.
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