We include the FCRA notice on all adverse actions that state our decision was made "in whole or in part on any information contained in a consumer report". Our regulator questioned whether this was appropriate for applications that were denied for collateral. I think we have a defensable position, but I wondered if anyone else had this same question.

Seems we have to defend everything these days.

I think we have a defensable position, but I wondered if anyone else had this same question.

I have never seen a successful defense. The disclosure is to be given when - exactly when it says: "in whole or in part on any information contained in a consumer report". It lets them know that there are problems with their credit and that it also entitles them by law to a free credit report from that credit bureau. Giving it to them when the credit report had nothing to do with your decision is inaccurate and misleading.

This is a common regulatory citation by all the regulators.

I agree with Randy. When I review a bank's loan files I often find that they check this off for every adverse action even when the denial had nothing to do with the credit report. I cite it as an error as it is inaccurate and misleading.

If you follow the instructions, you will only use that when the denial was for reasons in the consumer report.

I also agree with Randy and Kathleen.

If you search the threads you will find many more discussions on the issue and you will find they all have the same results. Providing the FCRA AAN when a consumer credit report played no part in the credit decision is wrong.