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#690071 - 02/20/07 11:01 PM Investigative Consumer Report
gadawg1 Offline
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Joined: Sep 2006
Posts: 419
Georgia
One of our lending areas wishes to begin doing background checks at both the state and federal level on its potential borrowers?

Does this trigger the FCRA requirments to provide notice in the case of declining the applicant, if the background check was from a company other than one of the big 3 credit bureaus?

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#690145 - 02/21/07 03:57 AM Re: Investigative Consumer Report gadawg1
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
For consumer loans???
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#690192 - 02/21/07 02:15 PM Re: Investigative Consumer Report rlcarey
gadawg1 Offline
Gold Star
Joined: Sep 2006
Posts: 419
Georgia
These would be individual borrower and or guarantors for small business loans.

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#1685600 - 04/04/12 03:45 PM Re: Investigative Consumer Report gadawg1
Tesla Offline
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Joined: Nov 2003
Posts: 3,726
Bumping this one. What is the answer?
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#1685874 - 04/04/12 09:24 PM Re: Investigative Consumer Report gadawg1
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
How does a public record check equate to an investgiative consumer report?

The term “investigative consumer report” means a consumer report or portion thereof in which information on a consumer's character, general reputation, personal characteristics, or mode of living is obtained through personal interviews with neighbors, friends, or associates of the consumer reported on or with others with whom he is acquainted or who may have knowledge concerning any such items of information.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1686585 - 04/06/12 05:16 PM Re: Investigative Consumer Report rlcarey
Tesla Offline
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Joined: Nov 2003
Posts: 3,726
Help me work through this:

Would a background check company meet this definition:

§603(f). The term “consumer reporting agency” means any person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties, and which uses any means or facility of interstate commerce for the purpose of preparing or furnishing consumer reports.

based on the words "or other information on consumers".

and would their report then meet the definition of consumer report:

The term "consumer report" means any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer's eligibility for...(partial section).

and if the background check vendor interviews neighbors, etc. to get a portion of its information combined with public record information would it make it an "investigative consumer report"?

§603(e). The term “investigative consumer report” means a consumer report or portion thereof in which information on a consumer's character, general reputation, personal characteristics, or mode of living is obtained through personal interviews with neighbors, friends, or associates of the consumer reported on or with others with whom he is acquainted or who may have knowledge concerning any such items of information. However, such information shall not include specific factual information on a consumer's credit record obtained directly from a creditor of the consumer or from a consumer reporting agency when such information was obtained directly from a creditor of the consumer or from the consumer.

And if so, would you be subject to §606 disclosure requirements?
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It's not that I take life for granted. It's only that the good won't make it. Innocence dies, while Villany Thrives.

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