As we know, FCRA requires that you provide a notice to the consumer when you take adverse action based upon information contained in a credit report. We've had discussion before on whether or not it's required to actually send separate notices to each applicant when, for example, the loan application is declined because of information on the credit reports of all applicants. My question is, how many of you are actually sending out separate notices, and how many are sending out one notice addressed to both applicants?

I've dealt with two different regulatory agencies in a different region than where I am now that required separate notices (years ago, though), and another one that said one addressed to both was fine unless they lived at different addresses. Historically, the bank I'm at now has also taken that conservative approach, and I support that. However, we are now challenged with the fact that we have changed mortgage systems, and this system will not generate separate adverse action notices. The choice will be to manually type the notices, or print two copies, highlight each name separately to indicate who it should go to, and mail out two notices. I'm thinking we are not truly expected to go through all that, and are fine sending one notice addressed to both if they reside at the same address, but I know that's not the most conservative approach. Looking to see what others are doing and how your examiners have been with that (especially if you are in FDIC's Dallas region). Thank you!

For my bank, if denial involves 2 people who live at different addresses, and both are being denied because of info in a cr rept, we would send a denial notice to each. If they lived at the same address, we'd address the denial to both and would send only one denial notice.

We send separate notices to each applicant.

Since the FCRA makes no provision for a single notice when both credit reports contribute to a denial, I'm not sure how you would get around it in the long run. Depending on your examiner, you are eventually going to get called on that practice.

I'm sorry - I don't understand your comment. Are you saying we are supposed to send one AAN with eveyone's name on it?

FCRA requires that you send a separate FCRA adverse action notice to every applicant who's credit report contributed to the denial - whether that is combined with the adverse action notice required by Regulation B or not.

Oh - OK - so you should be doing them separately. Whew! You had me worried.

Sorry SkiDoo, I was not really replying to your post. I was replying to the original poster that was asking what other institutions do...

Apparently there as an FRB interpretation in 2003 that said you could send one notice, but I can't seem to find that now. Lucy Griffin's advice in a Q & A that she wrote in 2004 on this pretty much said that since what the FRB said didn't coincide with what FTC said, then you should contact your regulator, which I am going to do but was hoping to have found that 2003 interpretation. Anyone happen to have that? I've tried searching on this site and FRB's but haven't found it yet.

I am not aware that the FTC has changed their view in the last 8 years. They are the offical interpretive agency for the FCRA.

http://www.ftc.gov/os/statutes/fcra/stinneford.shtm

Can you put the "separate" notices in one envelope (if going to the same address) or would two separate envelopes need to be used?

As silly as this sounds, I know of several banks that do just this. I also know of several banks that realize how silly this is so they print one notice, addressed to both spouses, and mail it. When the info is the same for both, I've never seen an examiner cite this.

This doesn't mean Randy is correct about the Stinneford interpretation from the FTC. I just don't see examiners getting after this issue.

Thanks, David. That's really what I'm looking for - has anyone really been cited? I appreciate Randy's help especially since his opinion had matched what mine had been for so long. The last bank I was at didn't take such a conservative approach because of the guidance from FRB. I am now at a bank that has been conservative in it's approach to this in the past, but given the system constraints on a new mortgage system, has opted to send one leter addressed to both for the most part, so I was curious as to whether or not other banks were doing this, and if any had been cited for not sending separate letters.

Appreciate the input received thus far. Thank you!