Federal Fair Credit Reporting Act (as amended by the Consumer Credit Reporting Reform Act of 1996)

Although the FCRA primarily regulates the operations of consumer credit reporting agencies, it also affects you as a user of information. We have included a copy of the FCRA with your membership kit. We suggest that you and your employees become familiar with the following sections in particular:
604. Permissible Purposes of Reports
607. Compliance Procedures
615. Requirement on users of consumer reports
616. Civil liability for willful noncompliance
617. Civil liability for negligent noncompliance
619. Obtaining information under false pretenses
621. Administrative Enforcement
623. Responsibilities of Furnishers of Information to Consumer Reporting Agencies

Each of these sections is of direct consequence to users who obtain reports on consumers.

As directed by the law, credit reports may be issued only if they are to be used for extending credit, review or collection of an account, employment purposes, underwriting insurance or in connection with some other legitimate business transaction such as in investment, partnership, etc. It is imperative that you identify each request for a report to be used for employment purposes when such report is ordered. Additional state laws may also impact your usage of reports for employment purposes.

We strongly endorse the letter and spirit of the Federal Fair Credit Reporting Act. We believe that this law and similar state laws recognize and preserve the delicate balance between the rights of the consumer and the legitimate needs of commerce.

In addition to the Federal Fair Credit Reporting Act, other federal and state Laws addressing such topics as computer crime and unauthorized access to protected databases have also been enacted. As a prospective user of consumer reports, we expect that you and your staff will comply with all relevant federal statutes and the statutes and regulations of the states in which you operate.

We support consumer reporting legislation that will assure fair and equitable treatment for all consumers and users of credit information.

Access Security Requirements
Recognizing our obligation to fully support and implement policies, which protect the confidential nature of the information in our database and assure respect for consumer’s rights to privacy. Only those companies with approved members of our service and have permissible purpose for obtaining credit reports are permitted access to credit information. It is a requirement that all end users take precautions to secure any system or device used to access consumer credit information.

To that end, the following requirements have been established:
Your account number and password must be protected in such a way that this sensitive information is known only to key personnel. Under no circumstances should unauthorized persons have knowledge of your password. The information should not be posted in any manner within your facility. Any system access software you may use, whether developed by your company or purchased from a third party vendor, must have your account number and password “hidden” or embedded so that the password is known only to supervisory personnel. Each user of your system access software must then be assigned unique logon passwords. Your account number and passwords are not to be discussed by telephone to any unknown caller, even if the caller claims to be an employee. The ability to obtain credit information must be restricted to a few key personnel. Any terminal device used to obtain credit information should be placed in a secure location within your facility. Access to the devices should be difficult for unauthorized persons. Any devices/systems used to obtain consumer reports should be turned off and locked after normal business hours, when unattended by your key personnel. Hard copies and electronic files of consumer reports are to be secured within your facility and protected against release or disclosure to unauthorized persons. Hard copy consumer reports are to be shredded or destroyed, rendered unreadable, when no longer needed and when it is permitted to do so by applicable regulation(s). Electronic files containing consumer report data and/or information will be completely erased or rendered unreadable when no longer needed and when destruction is permitted by applicable regulation(s). “Any person who knowingly and willfully obtains information on a consumer from a consumer reporting agency under false pretenses shall be fined not more than $5,000 or imprisoned not more than one year, or both.”

Federal Fair Credit Reporting Act (15 USC § 1681q)

NCRA

The National Credit
Reporting Association
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