|
||||||||||
|
||||||||||
|
||||||||||
|
||||||||||
Consumer Reporting Agency
LAWDOG is intended to assist in the understanding of basic concepts. See Disclaimer. Always obtain legal advice from legal professionals.
The following definitions are found in Section 603 of the Fair Credit Reporting Act as amended :
"(f) The tern "consumer reporting agency" means
any person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly
engages in whole or in part in the practice of assembling or evaluating consumer credit
information or other information on consumers for the purpose of furnishing consumer
reports to third parties, and which uses any means or facility of interstate commerce for
the purpose of preparing or furnishing consumer reports.
.....................
(p) Consumer reporting agency that compiles and maintains files on consumers on a nationwide basis. The term "consumer reporting agency that compiles and maintains files on consumers on a nationwide basis" means a consumer reporting agency that regularly engages in the practice of assembling or evaluating, and maintaining, for the purpose of furnishing consumer reports to third parties bearing on a consumer's credit worthiness, credit standing, or credit capacity, each of the following regarding consumers residing nationwide:
(1) Public record information.
(2) Credit account information from persons who furnish that information regularly and in the ordinary course of business. "
A portion of the FTC Notices of Rights and Duties is produced below for illustration purposes only. This document highlights FTC's explanation in the use of the term "consumer reporting agency" versus the term "credit bureau".
A portion of the FTC Notices of Rights and Duties.........
3. Use of "CRA" as an acronym. A number of commenters from different sectors asserted that "CRA" is an awkward acronym for "consumer reporting agency; most of them suggested that "credit bureau" would be more easily understood. Some opined that "CRA" is too easily confused with a common acronym for the Community Reinvestment Act.
The term "credit bureau" is certainly known to more consumers than "CRA," but it has major drawbacks that the Commission believes make its use inappropriate here. The FCRA unquestionably applies to all consumer reporting agencies, a universe that includes more than credit bureaus (e.g., specialized CRAs that report only on mortgage or tenant applications, or only on consumers' check writing habits). It thus would be legally inaccurate to use "credit bureau" as a replacement. In addition, it would make the summary confusing to a consumer who receives it from a CRA that is not a credit bureau. While some commenters who are knowledgeable about financial laws may be accustomed to "CRA" as an acronym for the Community Reinvestment Act, only a small fraction of consumers who get this summary may make such a connection.
A copy of The Fair Credit Reporting Act, As Amended, and a copy of the FTC Official Staff Commentary to the Fair Credit Reporting Act, and the FTC Prescribed Notices are included under "Fair Credit Reporting Resources", available from LAWDOG Credit Reporting Center, or here. Use browser return button to return. Read Notices, Caution and Disclaimer.
Copyright© 1996-2000 by LAWDOG.COM Publishing, Inc. All rights reserved.
