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ECOA-FCRA Disclosures: “Check the 1st Box”

Question: 
For banks that provide combined ECOA-FCRA disclosures, is it standard practice to “Check the 1st Box” and provide FCRA credit score information if the decline reason is not based on the consumer report, but some other factor? (i.e. insufficient collateral, product not offered, out of lending area) Do other banks do this? We understand that we do NOT have to “Check the 1st box” and provide credit score information if it was NOT used in making the adverse decision, but what would be the risk to provide this information in the above cases?
Answer: 

by Randy Carey:

Providing/completing the FCRA portion of the adverse action notice when the credit report did not contribute to the denial would not be correct. That would grant the consumer certain rights that they are not entitled too.

Answer: 

by David Dickinson:

If the "1st Box" is referring to the 3rd party disclosure (Other than a consumer reporting agency), then you still don't provide the FCRA disclosure for insufficient collateral, product not offered, out of lending area, etc.

§615(b) says (in plain English):
If adverse action is taken concerning consumer credit (not deposit accounts or other applications) because of information obtained from a person other than a consumer reporting agency (i.e. employer, landlord, other banks, etc.) and the information reflects upon the consumer’s credit worthiness, credit standing, capacity, character, general reputation, personal characteristics, or mode of living, the bank must disclose to the consumer his/her right to know why she/he was denied and that she/he must make a written request for that information within 60 days.

As Randy stated, you should not over-disclose the FCRA rights.

First published on 09/08/2019

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