Question

Under the Fair Credit Reporting Act (FCRA) what is required if a business wishes to take an adverse action against an individual based on a credit report (such as denying tenancy)?

Answer 1

Under the Fair Credit Reporting Act (FCRA), businesses are required to take specific steps if they wish to take an adverse action against an individual based on a credit report. These steps include providing notices, informing the individual of their right to obtain a free copy of the report, and providing an adverse action notice with specific reasons.

Step-by-step explanation:

Under the Fair Credit Reporting Act (FCRA), if a business wishes to take an adverse action against an individual based on a credit report, such as denying tenancy, they are required to take certain steps to ensure fairness and transparency. These steps include:

1. Providing the individual with a notice that includes the name, address, and phone number of the consumer reporting agency that provided the credit report.
2. Informing the individual of their right to obtain a free copy of the credit report from the consumer reporting agency within 60 days.
3. Providing the individual with an adverse action notice that includes the specific reasons for the adverse action, such as denying tenancy, and notifying them of their right to dispute the accuracy of the information in the credit report.