QUESTION
Is there a requirement to provide the credit report to a
consumer? If so, do we need to also give the credit score to the consumer?
ANSWER
The Fair Credit Report Act (FCRA) does not place a
requirement on a financial institution to provide to the consumer a copy of a
credit report that the institution obtains on the consumer. However, the FCRA’s
provisions provide that a consumer reporting agency (“CRA”) may not prohibit
the user of a credit report furnished by the CRA from disclosing the contents
of the report to the consumer in instances where an adverse action is taken
against the consumer based in whole or in part on the credit report. [15 USC §
1681e(c)]
Under the FCRA, specifically section 609(g), a financial
institution who makes or arranges loans and who uses a consumer credit score in
connection with an application initiated or sought by a consumer for a
closed-end or open-end loan for a consumer purpose, that is secured by one to
four units of residential real property, must provide the following to the
consumer:
1. A
copy of the credit score and accompanying information that is obtained from a
CRA or which was developed and used by the user of the information; and,
2. A
copy of the “Notice to the Home Loan Applicant” (“Notice”).
[15 USC §§ 1681g(g)(1)(A), 1681g(f)]
The
Notice must include the name, address, and telephone number of each CRA that
provided a credit score that was used. [15 USC § 1681g(g)(1)(D)]
Jonathan
Foxx
President
& Managing Director
Lenders Compliance Group
