Topic: Fair Credit Reporting Act (FCRA)
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Where do we send the FCRA/ECOA adverse notice if the applicant is a business and we also pull credit reports for the individual business owners? Are there any privacy concerns for co-applicants who receive another co-applicant’s information on an adverse action notice?
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We recommend sending a combined ECOA/FCRA adverse action notice to the primary applicant, which in this case would be the business itself. In addition, we recommend sending FCRA adverse action notices to any individuals whose consumer credit reports you pulled, such as co-applicants, guarantors, and the business owners. Under the Equal Credit Opportunity Act (ECOA)…
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Do we need to continue responding to repeated credit disputes that we believe are sent from a credit repair service? If we do, what should we say?
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Based on the facts in your question, we believe that the bank does not have a duty to conduct an investigation of these disputes. The CFPB’s Regulation V, which implements the Fair Credit Reporting Act (FCRA), expressly provides an exception to the general rule requiring creditors to investigate disputes when the disputes are submitted by…
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Are there any Illinois or federal compliance requirements that apply to commercial leases, besides the ECOA and FCRA adverse action notices? Our institution will be leasing out equipment that is owned by the bank.
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As a general rule, most compliance laws and regulations are aimed at protecting consumers and not commercial customers. For example, while Regulation M governs disclosures, advertising and other issues related to leases, it expressly states that it applies only to consumer leases. 12 CFR 1013.1(b). However, a few laws might apply to your commercial leases…