A question has come up concerning section 615(b) Adverse Action Based on information obtained from third parties other than consumer reporting agencies.
In my experience, this option was only selected on an adverse action notice when the Bank directly obtained information concerning a customer's payment history from a landlord, or from a creditor who did not report to the credit bureaus. For example, years ago finance companies didn't always report and we would call the office directly and obtain the customer's payment history.

The question posed is whether or not that box should be marked because we obtained VOEs, tax returns, W-2s that are provided to the borrowers by third parties. I don't believe these items bear on the customer's credit worthiness, standing,..., but another Compliance source provided the opinion that it could be anything that isn't on a credit report, provided by a third party, including the items listed.

Does anyone have different interpretation or guidance that could help clarify when this section applies?

Thank you!

Well, it sort of depends. The only place you are going to get tax returns or W-2s would be from the IRS (via IVES). I would have to stretch a little as to how that information would lead to a denial, unless the applicant was lying on their credit application. A VOE might be more likely. There is even an example in the "40 YEARS OF EXPERIENCE WITH THE FAIR CREDIT REPORTING ACT".

SUBSTANCE OF REQUIRED DISCLOSURES
When the adverse action is communicated to the consumer, the creditor must clearly and accurately disclose to the consumer his or her right to make a written request for the disclosure of the nature of the third party information that led to the adverse action. Upon timely receipt of such a request, the creditor need disclose only the nature of the information that led to the adverse action (e.g., history of late rent payments or bad checks); it need not identify the source that provided the information or the criteria that led to the adverse action. A statement of principal, specific reasons for adverse action based on third party information that is sufficient to comply with the requirements of Section 701(d) of the ECOA and its implementing Regulation B, 12 CFR 202.9(b) (2) (e.g., “unable to verify employment”) constitutes disclosure of the “nature of the information” under subsection (b).

Thank you!