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Fraud Alert on Consumer Credit Report

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Question: 
If there is a fraud alert on the consumer credit report, is the creditor required to attempt to contact the consumer at the phone number on the fraud alert message, or can the creditor just decline the application and not bother with trying to contact the consumer?
Answer: 

The user of a consumer report containing an extended Fraud Alert must contact the consumer in person or by using a telephone number or other reasonable contact method designated by the consumer. [605A(h)(2)]

You must also respond to ID Theft Ref Flags (a fraud alert is one of them). [334.90] Contacting the customer and denying the application are two acceptable responses. Refer to Appendix J for more information on acceptable responses.

First published on 01/08/2017

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