According to a study conducted by the Federal Trade Commission (FTC), 26% of credit reports examined included at least one “potentially material” error in one or more of the three credit reports from Experian, TransUnion or Equifax. Some of these errors can negatively affect a consumer’s credit score by up to 100 points.
The Fair Credit Reporting Act has been in effect since 1971, but has been amended by changes in the FACT Act and most recently by the Economic Growth, Regulatory Relief and Consumer Protection Act (EGRRCPA) of May 2018. These changes increased consumer protection and implemented the “Nationwide Security Freeze”, changed rules for veteran’s medical debts, and permits consumers to rehabilitate certain information for delinquent private student loans.
Consumer complaints and the Equifax breach has increased focus by regulators. In addition, increased identify theft, fraud, and cybercrime have a direct relationship with the potential for inaccurate credit reports.
There are numerous compliance challenges, ranging from what you can tell one joint applicant about the other applicant's credit, to when the FCRA portion should NOT be included with the adverse action form. What should your financial institution be doing to reduce the compliance risk of complaints & FCRA violations? Join us for a discussion of 10 issues that should be addressed in an effective FCRA compliance program.
Covered Topics
- Learn about the KEY (EGRRCPA) changes from
the 2018 that impact:
- Section 301 -Consumer rights to fraud alerts and FREE security freezes
- Section 302 - Veteran medical debt rules
- Section 602 - Private Student loan rehabilitation program
- What are the key definitions in the Fair Credit Reporting Act for “person”, “consumer” “consumer report” and “consumer reporting agency”?
- What are the permissible purposes for a consumer reporting agency to furnish a consumer report?
- What requirements must be followed by the USERS of consumer reports? There is increased emphasis on evaluation of “consumer harm” by regulators. Is your financial institution responding appropriately to direct disputes from consumers? What about the response to disputes and e-Oscar* inquiries from the national credit reporting agencies? (*stands for Online Solution for Complete and Accurate Reporting)
- What are the responsibilities to “furnish” accurate information?
- Is there a restriction on sharing credit and debit card numbers on electronic receipts?
- How should “negative” credit performance information be provided?
- How should adverse action/FCRA notices be given?
- Credit score disclosure notices – what’s required?
- Use of medical information – what are the rules?
- Exam procedures for FCRA – highlights and best practices.
Who Should Attend?
This informative session is designed for customer service representatives, branch managers, lenders, loan operations, credit administration, compliance personnel, collectors, and anyone who pulls credit reports, processes loan applications, or responds to questions about credit reports in the lending process.
Faculty
Susan Costonis is a compliance consultant and trainer. She specializes in compliance management along with deposit and lending regulatory training.
Susan has successfully managed compliance programs and exams for institutions that ranged from a community bank to large multi-state bank holding companies. She has been a compliance officer for institutions supervised by the OCC, FDIC, and Federal Reserve.
Susan has been a Certified Regulatory Compliance Manager since 1998, completed the ABA Graduate Compliance School, and graduated from the University of Akron and the Graduate Banking School of the University of Colorado. She regularly presents to financial institution audiences in several states and “translates” complex regulations into simple concepts by using humor and real life examples.
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