CFPB Reminds Consumer Reporting Companies of their FCRA Obligations

The CFPB reminded consumer reporting companies of their obligations under the Fair Credit Reporting Act ("FCRA") to (i) address inaccurate information found in background checks, (ii) monitor for improper credit file sharing and (iii) ensure that background check information is accessible to consumers.

In two advisory opinions, the CFPB urged reporting companies to pay more attention to credit checks and the sharing of sensitive private consumer information.

In the first opinion, the CFPB reminded companies that obligations on background checks are covered under FCRA Section 1681e(b)("Accuracy of Report") and Section 1681(a)(5)("Requirements relating to information contained in consumer reports") and that they are required to "maintain reasonable procedures to avoid producing reports with false or misleading information." The CFPB said that companies should:

• "[p]revent the reporting of public record information that has been expunged, sealed, or otherwise legally restricted from public access";

• "[e]nsure disposition information is reported for any arrests, criminal charges, eviction proceedings, or other court filings that are included in background check reports"; and

• "[p]revent the reporting of duplicative information."

In the second advisory, the CFPB reiterated a company's credit file disclosure responsibilities under FCRA Section 1681d(a)("Disclosure of investigative consumer reports"). The CFPB stated that company reports must include both where credit information was obtained and name intermediaries, if utilized in the process, so that misinformation may be detected and corrected. Further, the CFPB said that the information must be accessible to consumers in (i) a format "that will assist them in identifying inaccuracies, (ii) exercising their rights to dispute any incomplete or inaccurate information, and (iii) understanding when they are being impacted by adverse information."