DataQuest LLC 3/28/2019 - Laserfiche WebLink

II.CREDITORS MUST MAKE ADDITIONAL DISCLOSURES If a person uses a consumer report in connection with an application for,or a grant,extension,or provision of,credit to a consumer on material terms that are materially less favorable than the most favorable terms available to a substantial proportion of consumers from or through that person, based in whole or in part on a consumer report, the person must provide a risk-based pricing notice to the consumer in accordance with regulations prescribed by the CFPB. Section 609(g)requires a disclosure by all persons that make or arrange loans secured by residential real property(one to four units) and that use credit scores. These persons must provide credit scores and other information about credit scores to applicants,including the disclosure set forth in Section 609(g)(1)(D)("Notice to the Home Loan Applicant"). III.OBLIGATIONS OF USERS WHEN CONSUMER REPORTS ARE OBTAINED FOR EMPLOYMENT PURPOSES A.Employment Other Than in the Trucking Industry If the information from a CRA is used for employment purposes,the user has specific duties,which are set forth in Section 604(b)of the FCRA.The user must: • Make a clear and conspicuous written disclosure to the consumer before the report is obtained,in a document that consists solely of the disclosure,that a consumer report may be obtained. •Obtain from the consumer prior written authorization. Authorization to access reports during the term of employment may be obtained at the time of employment. •Certify to the CRA that the above steps have been followed,that the information being obtained will not be used in violation of any federal or state equal opportunity law or regulation,and that,if any adverse action is to be taken based on the consumer report,a copy of the report and a summary of the consumer's rights will be provided to the consumer. • Before taking an adverse action, the user must provide a copy of the report to the consumer as well as the summary of consumer's rights. (The user should receive this summary from the CRA.) A Section 615(a)adverse action notice should be sent after the adverse action is taken. An adverse action notice also is required in employment situations if credit information(other than transactions and experience data) obtained from an affiliate is used to deny employment. Section 615(b)(2). The procedures for investigative consumer reports and employee misconduct investigations are set forth below. B.Employment in the Trucking Industry Special rules apply for truck drivers where the only interaction between the consumer and the potential employer is by mail,telephone, or computer. In this case, the consumer may provide consent orally or electronically, and an adverse action may be made orally, in writing, or electronically. The consumer may obtain a copy of any report relied upon by the trucking company by contacting the company. IV.OBLIGATIONS WHEN INVESTIGATIVE CONSUMER REPORTS ARE USED Investigative consumer reports are a special type of consumer report in which information about a consumer's character, general reputation,personal characteristics,and mode of living is obtained through personal interviews by an entity or person that is a consumer reporting agency. Consumers who are the subjects of such reports are given special rights under the FCRA. If a user intends to obtain an investigative consumer report,Section 606 requires the following: •The user must disclose to the consumer that an investigative consumer report maybe obtained. This must be done in a written disclosure that is mailed,or otherwise delivered,to the consumer at some time before or not later than three days after the date on which the report was first requested. The disclosure must include a statement informing the consumer of his or her right to request additional disclosures of the nature and scope of the investigation as described below, and the summary of consumer rights required by Section 609 of the FCRA. (The summary of consumer rights will be provided by the CRA that conducts the investigation.) •The user must certify to the CRA that the disclosures set forth above have been made and that the user will make the disclosure described below. •Upon the written request of a consumer made within a reasonable period of time after the disclosures required above,the user must make a complete disclosure of the nature and scope of the investigation. This must be made in a written statement that is mailed or otherwise delivered,to the consumer no later than five days after the date on which the request was received from the consumer or the report was first requested,whichever is later in time. DataQuest CSA_Rev:20180524-2(CAS 1655106.DOCX:2/11336.020002/} Page 12 of 14