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#2192536 - 09/13/18 09:16 PM FCRA Section 609(c)(3)
lcc Offline
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Joined: Oct 2012
Posts: 127
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).

HELP!

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#2192567 - 09/14/18 01:18 PM Re: FCRA Section 609(c)(3) lcc
Adam Witmer Offline
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Joined: Sep 2010
Posts: 2,658
FCRA, Reg V, and FACT Act are always a mess, but I believe you can look at the FACT Act 1681b(b)(3). If that isn't the correct citation, I'm sure someone like Randy or John will chime in.

http://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title15-chapter41-subchapter3&edition=prelim

(3) Conditions on use for adverse actions
(A) In general
Except as provided in subparagraph (B), in using a consumer report for employment purposes, before taking any adverse action based in whole or in part on the report, the person intending to take such adverse action shall provide to the consumer to whom the report relates—

(i) a copy of the report; and

(ii) a description in writing of the rights of the consumer under this subchapter, as prescribed by the Bureau under section 1681g(c)(3) 1 of this title.

(B) Application by mail, telephone, computer, or other similar means
(i) If a consumer described in subparagraph (C) applies for employment by mail, telephone, computer, or other similar means, and if a person who has procured a consumer report on the consumer for employment purposes takes adverse action on the employment application based in whole or in part on the report, then the person must provide to the consumer to whom the report relates, in lieu of the notices required under subparagraph (A) of this section and under section 1681m(a) of this title, within 3 business days of taking such action, an oral, written or electronic notification—

(I) that adverse action has been taken based in whole or in part on a consumer report received from a consumer reporting agency;

(II) of the name, address and telephone number of the consumer reporting agency that furnished the consumer report (including a toll-free telephone number established by the agency if the agency compiles and maintains files on consumers on a nationwide basis);

(III) that the consumer reporting agency did not make the decision to take the adverse action and is unable to provide to the consumer the specific reasons why the adverse action was taken; and

(IV) that the consumer may, upon providing proper identification, request a free copy of a report and may dispute with the consumer reporting agency the accuracy or completeness of any information in a report.

(ii) If, under clause (B)(i)(IV), the consumer requests a copy of a consumer report from the person who procured the report, then, within 3 business days of receiving the consumer's request, together with proper identification, the person must send or provide to the consumer a copy of a report and a copy of the consumer's rights as prescribed by the Bureau under section 1681g(c)(3) 1 of this title.
_________________________
Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advice.
www.compliancecohort.com

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#2192568 - 09/14/18 01:19 PM Re: FCRA Section 609(c)(3) lcc
Adam Witmer Offline
Power Poster
Joined: Sep 2010
Posts: 2,658
_________________________
Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advice.
www.compliancecohort.com

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