Third-Party Terms

The terms and conditions set forth below are required by ACORD in connection with the use of any ACORD form (“Licensed Form”) contained in Vertafore Solutions. As of January 1, 2020, ACORD requires direct membership. Please refer to the following website for membership information: www.acord.org/forms-pages/forms-participation-programs.

  1. THIS PRODUCT INCORPORATES LICENSED COPYRIGHTED AND OTHER PROPRIETARY MATERIAL OF ACORD CORPORATION, INCLUDING ACORD STANDARDIZED FORMS. ACORD FORMS ARE LICENSED BY ACORD, NOT SOLD.
  2. YOU ACKNOWLEDGE AND AGREE THAT YOU MUST BE PARTY TO A WRITTEN LICENSE AGREEMENT DIRECTLY WITH ACORD CORPORATION IN ORDER TO USE THE ACORD FORMS CONTAINED IN THIS PRODUCT, AND REPRESENT AND WARRANT THAT YOU WILL OBTAIN SUCH A LICENSE PRIOR TO USING ACORD FORMS. NEITHER THE PROVIDER OF THIS PRODUCT, NOR ANY THIRD PARTY, CAN GRANT LICENSES TO USE ACORD FORMS. YOU CAN OBTAIN A LICENSE AGREEMENT PERMITTING YOU AND YOUR USERS TO USE ACORD FORMS, WHICH MAY REQUIRE YOU TO PAY FEES TO ACORD, BY CONTACTING ACORD AT +1-845-620-1700 OR THROUGH THE ADDITIONAL CONTACT INFORMATION AVAILABLE AT WWW.ACORD.ORG.
  3. ACORD FORMS ARE MODIFIED PERIODICALLY TO REFLECT CHANGING LEGAL, INDUSTRY AND OTHER REQUIREMENTS. THE ACORD FORMS CONTAINED IN THIS PRODUCT MAY NOT BE THE MOST CURRENT MATERIALS THAT ACORD PUBLISHES.
  4. USING OUTDATED ACORD FORMS MAY BE PROHIBITED IN CERTAIN CASES BY GOVERNMENT REGULATORS AND INCREASES THE RISK OF LEGAL ACTION BY INSUREDS AND OTHER THIRD PARTIES.
  5. IT IS SOLELY YOUR RESPONSIBILITY TO CONFIRM THAT YOU ARE USING ONLY THE MOST CURRENT FORMS THAT ACORD PUBLISHES. YOU MAY DETERMINE THE CURRENCY OR NON-CURRENCY OF ACORD FORMS BY CONSULTING THE FORMS INFORMATION SECTION OF ACORD’S WEBSITE (WWW.ACORD.ORG).
  6. ACORD is an intended third-party beneficiary of the above provisions. The above provisions are made expressly for the benefit of, and are enforceable by, ACORD. The name ACORD and the ACORD logo are registered marks of ACORD Corporation.

The terms and conditions set forth below are required by American Association of Insurance Services ("AAIS") in connection with the use of any AAIS content ("AAIS Content") contained in Vertafore Solutions.

AAIS Content: (a) cannot be provided to Customer unless Customer is, or becomes a current Customer of AAISdirect Online directly with AAIS; (b) may be used only in connection with Customer’s property casualty insurance operations relating to risks located in the United States; and (c) must directly relate to the lines(s) of business, jurisdiction(s) and service(s) for which Customer is licensed by AAISdirect Online directly with AAIS. Vertafore will not provide the AAIS Content to any Customer that Vertafore is made aware does not meet the foregoing requirements. By executing an Order, Customer represents that it is a current AAIS Customer of AAISdirect Services in good standing.

THE PROVIDERS OF THIRD PARTY CONTENT DO NOT GUARANTEE THE ACCURACY OR TIMELINESS OF THE INFORMATION PROVIDED. THE PROVIDERS OF THIRD PARTY CONTENT SHALL NOT BE LIABLE FOR ANY LOSS OR DAMAGE OF ANY KIND AND HOWSOEVER CAUSED RESULTING FROM CUSTOMER’S USE OF THE INFORMATION.

The below AAIS link connects to the AAIS direct application. Customer agrees to maintain a current and valid subscription to AAIS in connection with accessing the AAIS content and to the terms and conditions governing such access located at: http://www.aaisonline.com/Services/AAISdirect.aspx..

The terms and conditions set forth below are required by A.M. Best Company ("AMB") in connection with the use of any AMB content contained in Vertafore Solutions.

Information that is copyrighted by and proprietary to AMB and other providers of third party content (“Third Party Content”) may be included in the Vertafore Libraries, and is made available to the Customer under the terms of this Agreement. The duration of the license agreement between the providers of Third Party Content and Vertafore is subject to renewal and may be limited. Notwithstanding any other provision, hereunder, Customer contact information may be supplied to the providers of Third Party Content contained in the Vertafore Libraries for use by such providers of Third Party Content.

THE PROVIDERS OF THIRD PARTY CONTENT DO NOT GUARANTEE THE ACCURACY OR TIMELINESS OF THE INFORMATION PROVIDED. THE PROVIDERS OF THIRD PARTY CONTENT SHALL NOT BE LIABLE FOR ANY LOSS OR DAMAGE OF ANY KIND AND HOWSOEVER CAUSED RESULTING FROM CUSTOMER’S USE OF THE INFORMATION.

  1. You acknowledge that all information (the "Information") furnished by D&B through its distributors or authorized resellers is licensed for the exclusive use of end users.  Regardless of the form or format in which the Information is furnished, none of the Information may be made available in whole or in part to any third party.  You agree that you will not duplicate any magnetic tapes, disks, diskettes and other machine readable media In any  form or manner whatsoever, except that you may make one copy solely for backup purposes.  You are expressly prohibited from using the Information as a factor in establishing an Individual’s eligibility for (i) credit or insurance to be used primarily for personal, family or household purposes, or (ii) employment.  You agree not to use the Information to engage in unfair or deceptive practices.
  2. You agree to indemnify, defend and hold harmless D&B from any claim or cause of action against D&B arising out of relating to use of the Information by (i) individuals or entities which have not been, authorized by this Agreement to have access to and/or use the Information and (ii) you, which use may be in violation of your license.
  3. Where Information is slated to be for one-time use, you agree to use the Information to generate a single mailing or telephone solicitation campaign, and for no other purpose.  Except for Information furnished for a one-time use, Information furnished hereunder may be used throughout the continuous 12-month period commencing thirty (30) days from the signing of this Agreement.  You represent and warrant that your use of any Information shall in all cases comply with all applicable federal, state, and local laws and regulation and that all mail or other marketing programs using any Information shall conform to generally recognized standards of high integrity and good taste. 
  4. You acknowledge that D&B and its third party information providers make no representation or warranties of any kind with respect to the Information, including but not limited to, the accuracy, completeness, timeliness, merchantability or fitness for a particular purpose of the Information or of the media on which the Information is provided and you agree that D&B and its third party information providers shall not be liable to you for any loss or injury arising out of or caused, in whole or in part, by D&B’s negligent acts or omissions in procuring, compiling, collecting, interpreting, reporting, communicating or delivering the Information. 
  5. You agree that D&B and its third party information providers will not be liable for consequential, incidental, special, punitive or other indirect damages, even if advised of the possibility of such damages.  You also agree that D&B’s and its third party information providers’ aggregate liability, if any, for any and all losses or injuries to you arising out of any acts or omissions of D&B in connection with a particular order or service, regardless of the cause of the loss or injury (including negligence) and regardless of the nature of the legal or equitable right claimed to have been violated, shall never exceed the amount paid by you for the Information furnished pursuant to such order or service or $5,000, whichever is greater, and you covenant and promise not to sue D&B for an amount greater than such sum.  You also agree to give D&B immediate written notice of all actions, claims, losses or damages arising out of the licensing or use of the Information. 
  6. You acknowledge and agree that the Information is proprietary to D&B and comprises: (a) works of original authorship, including compiled Information containing D&B’s selection, arrangement and coordination and expression of such information or pre-existing material it has created, gathered or assembled; (b) confidential and trade secret information; and (c) information that has been created, developed and maintained by D&B at great expense of item and money, such that misappropriation or unauthorized use by others for commercial gain would unfairly or irreparably harm 0D&B.  You agree that you will not commit or permit any act or omission by your agents, employees, or any third party that would impair D&B’s copyright or other proprietary and intellectual property rights in the Information.  You will not use any D&B trade names, trademarks, service marks or copyrighted materials in listings or advertising in any manner without the prior written approval of D&B.  You shall reproduce D&B’s copyright notice and proprietary rights legend on all authorized copies of such information. 
  7. You agree that this Agreement is entered into between yourself and Vertafore for the benefit of the parties and that D&B is a third party beneficiary hereof.  You agree that D&B may, in its own name or in Vertafore’s name, enforce this Agreement against you; provided, however, that you agree that you will look only to Vertafore and not to D&B for performance by Vertafore of its obligation hereunder. 
  8. Upon expiration or termination of an order with respect to particular Information, you shall immediately delete, destroy or return all original and copies of any D&B Information, unless you are otherwise instructed by D&B or Vertafore; and upon request, provide D&B with certification thereof. 

The terms and conditions set forth below are required by International Risk Management Institute (“IRMI”) in connection with the use of any IRMI content contained in Vertafore Solutions.

Information that is copyrighted by and proprietary to International Risk Management Institute (“IRMI”) and other providers of third party content (“Third Party Content”) may be included in the Vertafore Libraries, and is made available to the Customer under terms of this Agreement. The duration of the license agreement between the providers of Third Party Content and Vertafore is subject to renewal and may be limited. Notwithstanding any other provision, hereunder, Customer contact information may be supplied to the providers of Third Party Content contained in the Vertafore Libraries for use by such providers of Third Party Content.

THE PROVIDERS OF THIRD PARTY CONTENT DO NOT GUARANTEE THE ACCURACY OR TIMELINESS OF THE INFORMATION PROVIDED. THE PROVIDERS OF THIRD PARTY CONTENT SHALL NOT BE LIABLE FOR ANY LOSS OR DAMAGE OF ANY KIND AND HOWSOEVER CAUSED RESULTING FROM CUSTOMER’S USE OF THE INFORMATION.

The terms and conditions set forth below are required by Insurance Services Office, Inc. (“ISO”) in connection with the use of any ISO content contained in Vertafore Solutions.

Information that is copyrighted by and proprietary “ISO”, and other providers of third party content (“Third Party Content”) may be included in the Vertafore Libraries, and is made available to the Customer under the terms of this Agreement. The duration of the license agreement between the providers of Third Party Content and Vertafore is subject to renewal and may be limited. Notwithstanding any other provision, hereunder, Customer contact information may be supplied to the providers of Third Party Content contained in the Vertafore Libraries for use by such providers of Third Party Content.

ISO Participating Insurers’ use of ISO copyrighted and proprietary material is limited to those jurisdictions and for those lines of insurance, jurisdictions and services for which such insurer participates with ISO. Agent, broker and MGA use of ISO copyrighted and proprietary material is limited to the participation of the ISO Participating Insurer(s) they represent and may be subject to additional licensing requirements with ISO.

THE PROVIDERS OF THIRD PARTY CONTENT DO NOT GUARANTEE THE ACCURACY OR TIMELINESS OF THE INFORMATION PROVIDED. THE PROVIDERS OF THIRD PARTY CONTENT SHALL NOT BE LIABLE FOR ANY LOSS OR DAMAGE OF ANY KIND AND HOWSOEVER CAUSED RESULTING FROM CUSTOMER’S USE OF THE INFORMATION.

The terms and conditions set forth below are required by LexisNexis in connection with the use of any LexisNexis content contained in Vertafore Solutions.

Where the Vertafore Solution includes functionality called “Solutions at Quote”. Solutions at Quote functionality allows agents to receive real time comprehensive data on drivers and vehicles associated with a specific mailing address through a single interactive inquiry. Vertafore may at its option upon notice to you which may be through email, delivery through use of the product, or other similar electronic means, elect to charge fees for Solutions at Quote. Customer will be billed (if applicable) for use of Solutions at Quote by Vertafore pursuant to the terms and conditions of this Agreement. Except for billing as specified herein, Solutions at Quote is provided to you by LexisNexis pursuant to a separate agreement between LexisNexis and Customer.

VERTAFORE MAKES NO REPRESENTATIONS AND WARRANTIES (EITHER EXPRESS OR IMPLIED) IN CONNECTION WITH SOLUTIONS AT QUOTE AND SHALL HAVE NO LIABILITY FOR DAMAGES OF ANY KIND IN CONNECTION WITH SUBSCRIBER’S USE OF SOLUTIONS AT QUOTE INCLUDING DIRECT DAMAGES OR ANY INDIRECT, CONSEQUENTIAL OR INCIDENTIAL DAMAGES (INCLUDING DAMAGES FOR LOST PROFITS, LOST OPPORTUNITIES) OR ANY PUNITIVE OR EXEMPLARY DAMAGES.

The following link direct to NIPR also connects to the Fair Credit Reporting Act ("FCRA"). Customer agrees to all such applicable terms and requirements in the FCRA

Customer authorizes NIPR to obtain information from the Producer Database and provide it to Vertafore for purposes of completing a license application and if the license application is for a producer and the Customer is not the producer, Customer represents that it has obtained the written authorization of the producer to complete and submit a license application on the producer’s behalf.

Customer acknowledges NIPR is not obligated to process a license application until it has received adequate funds to cover the applicable state insurances department fees and NIPR fees associated with processing the Customer’s license application.

Customer acknowledges that all applicable state insurance department fees shall be nonrefundable except as provided for by applicable state law and all applicable NIPR fees shall be nonrefundable.

The terms and conditions set forth below are required by National Insurance Producer Registry (NIPR) in connection with the access and use of the NIPR Producer Database (PDB) and Sircon Database contained in Vertafore Solutions. Customer represents and warrants it is engaged in the business of insurance and has a permissible purpose for obtaining consumer reports, as defined by Section 604 of the Federal Fair Credit Reporting Act (15 U.S.C. § 1681b) as amended by the Consumer Credit Reporting Reform Act of 1996 or as may hereafter be amended, hereinafter called "FCRA".  Customer certifies it will comply with the provisions of the FCRA when requesting and using a consumer report from the Producer Database and/or Sircon Database.  A Notice to Users of Consumer Reports, as prescribed by the Federal Trade Commission ("FTC"), follows as Exhibit 1 to this Acknowledgment.

For purposes of this Agreement, the term "consumer report" and "Consumer Report for Employment Purposes" shall have the same meaning as given to these terms by the FCRA.

Customer agrees it will not request a Consumer Report for Employment Purposes unless: (a) a clear and conspicuous disclosure is first made in writing to the individual who is the subject of the consumer report before the report is obtained, in a document that consists solely of the disclosure, that a consumer report may be obtained for employment purposes; (b) the individual who is the subject of the consumer report has authorized in writing the procurement of the report; (c) Customer complies with the FCRA in the event it takes adverse action in whole or in part based upon the consumer report and (d) information from the consumer report will not be used in violation of any applicable federal or state equal opportunity law or regulation.

For purposes of Customer’s notice obligations in regards to taking adverse action, a Summary of Consumer Rights, as prescribed by the FTC, is herein attached as Exhibit 1 to this Acknowledgment and will be made available to Customer each time it signs off the Producer Database or Sircon Database. Customer agrees it will maintain copies of all written authorizations required herein for a minimum of three (3) years from the date of inquiry.  Customer agrees it shall use a consumer report for a one-time use only, and will not disclose the information in the report to any third parties except those involved in the current decision affecting the individual who is the subject of the consumer report.

Customer agrees it shall not, and shall not have the right to, directly or indirectly offer, sell, make available or to otherwise distribute all or any portion of the information from the Producer Database or Sircon Database to any person, entity or organization provided, however, such information may be used by a majority owned subsidiary of Customer, or an agency, consultant or contractor of Customer but only to the extent necessary to allow such subsidiary, agency, consultant or contractor to directly perform service on behalf of Customer is such subsidiary, agency, consultant or contractor represents and warrants that such information shall not be used for any other purposes.

Customer agrees to indemnify, defend and hold harmless Sircon and the National Insurance Producer Registry, a Missouri nonprofit corporation (a/k/a NIPR) from and against any liability or claim of any persons that is attributable to Customer’s failure to comply with the applicable provisions of the FCRA. Neither Sircon nor the NIPR makes any representation or warranty respecting the completeness or accuracy of the data obtained from the Producer Database or Sircon Database.

National insurance producer Registry (nipr) Producer Database (PDB)and Sircon Database Acknowledgment TERMS AND CONDITIONSNOTICE TO USERS OF CONSUMER REPORTS: OBLIGATIONS OF USERS UNDER THE FCRA

The Fair Credit Reporting Act (FCRA), 15 U.S.C. 1681-1681y, requires that this notice be provided to inform users of consumer reports of their legal obligations. State law may impose additional requirements. The text of the FCRA is set forth in full at the Federal Trade Commission's Internet web site at www.consumerfinance.gov/learnmore.   At the end of this document is a list of United States Code citations for the FCRA.  Other information about user duties is also available at the CFPB’s website. Users must consult relevant provisions of the FCRA for details about their obligations under the FCRA.

The first section of this summary sets forth the responsibilities imposed by the FCRA on all users of consumer reports. The subsequent sections discuss the duties of users of reports that contain specific types of information, or that are used for certain purposes, and the legal consequences of violations. If you are a furnisher of information to a consumer reporting agency (CRA), you have additional obligations and will receive a separate notice from the CRA describing your duties as a furnisher.

I

OBLIGATIONS OF ALL USERS OF CONSUMER REPORTS

A.

Users Must Have a Permissible Purpose

Congress has limited the use of consumer reports to protect consumers' privacy. All users must have a permissible purpose under the FCRA to obtain a consumer report. Section 604 of the FCRA contains a list of the permissible purposes under the law. These are:

 

  • As ordered by a court or a federal grand jury subpoena. Section 604(a)(1)
  • As instructed by the consumer in writing. Section 604(a)(2)
  • For the extension of credit as a result of an application from a consumer, or the review or collection of a consumer's account. Section 604(a)(3)(A)
  • For employment purposes, including hiring and promotion decisions, where the consumer has given written permission. Sections 604(a)(3)(B) and 604(b)
  • For the underwriting of insurance as a result of an application from a consumer. Section 604(a)(3)(C)
  • When there is a legitimate business need, in connection with a business transaction that is initiated by the consumer. Section 604(a)(3)(F)(i)
  • To review a consumer's account to determine whether the consumer continues to meet the terms of the account. Section 604(a)(3)(F)(ii)
  • To determine a consumer's eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant's financial responsibility or status. Section 604(a)(3)(D)
  • For use by a potential investor or servicer, or current insurer, in a valuation or assessment of the credit or prepayment risks associated with an existing credit obligation. Section 604(a)(3)(E)
  • For use by state and local officials in connection with the determination of child support payments, or modifications and enforcement thereof. Sections 604(a)(4) and 604(a)(5)

In addition, creditors and insurers may obtain certain consumer report information for the purpose of making unsolicited offers of credit or insurance. Section 604(c). The particular obligations of users of "prescreened" information are described in Section VII below.

B.

Users Must Provide Certifications

 

Section 604(f) prohibits any person from obtaining a consumer report from a consumer reporting agency (CRA) unless the person has certified to the CRA the permissible purpose(s) for which the report is being obtained and certifies that the report will not  be used for any other purpose.

C:

The term "adverse action" is defined very broadly by Section 603. "Adverse actions" include all business, credit, and employment actions affecting consumers that can be considered to have a negative impact as defined by Section 603(k) of the FCRA -- such as denying or canceling credit or insurance, or denying employment or promotion. No adverse action occurs in a credit transaction where the creditor makes a counteroffer that is accepted by the consumer.

1.

Adverse Actions Based on Information Obtained From a CRA

 

If a user takes any type of adverse action as defined by the FCRA that is based at least in part on information contained in a consumer report, Section 615(a) requires the user to notify the consumer. The notification may be done in writing, orally, or by electronic means. It must include the following:

 

  • The name, address, and telephone number of the CRA (including a toll-free telephone number, if it is a nationwide CRA) that provided the report.
  • A statement that the CRA did not make the adverse decision and is not able to explain why the decision was made.
  • A statement setting forth the consumer's right to obtain a free disclosure of the consumer's file from the CRA if the consumer requests the report within 60 days.
  • A statement setting forth the consumer's right to dispute directly with the CRA the accuracy or completeness of any information provided by the CRA
  • .

2.

Adverse Actions Based on Information Obtained From Third Parties Who Are Not Consumer Reporting Agencies

 

If a person denies (or increases the charge for) credit for personal, family, or household purposes based either wholly or partly upon information from a person other than a CRA, and the information is the type of consumer information covered by the FCRA, Section 615(b)(1) of the FCRA requires that the user clearly and accurately disclose to the consumer his or her right to be told  the nature of the information that was relied upon if the consumer makes a written request within 60 days of notification. The user must provide the disclosure within a reasonable period of time following the consumer's written request.

3.

Adverse Actions Based on Information Obtained From Affiliates

 

If a person takes an adverse action involving insurance, employment, or a credit transaction initiated by the consumer, based on information of the type covered by the FCRA, and this information was obtained from an entity affiliated with the user of the information by common ownership or control, Section 615(b)(2) requires the user to notify the consumer of the adverse action. The notice must inform the consumer that he or she may obtain a disclosure of the nature of the information relied upon by making a written request within 60 days of receiving the adverse action notice. If the consumer makes such a request, the user must disclose the nature of the information not later than 30 days after receiving the request. If consumer report information is shared among affiliates ant then used for an adverse action, the user must make an adverse action disclosure as set forth in I.C.1.above.

D.

Users Have Obligations When Fraud and Active Duty Military Alerts are in Files

 

When a consumer has placed a fraud alert, including one relating to identity theft, or an active duty military alert with a nationwide consumer reporting agency as defined in Section 603(p) and resellers, Section 605A(h) imposes limitations on users of the reports obtained from the consumer reporting agency in certain circumstances, including the establishment of a new credit plan and the issuance of additional credit cards. For initial fraud alerts and active duty alerts, the user must have reasonable policies and procedures in place to form a belief that the user knows the identity of the applicant or contact the consumer at a telephone number specified by the consumer; in the case of extended fraud alerts, the user must contact the consumer in accordance with the contact information provided in the consumer’s alert.

E.

Users Have Obligations When Notified of an Address Discrepancy

 

Section 605(h) requires nationwide CRAs, as defined in Section 603(p) to notify users that request reports when the address for a consumer provided by the user in requesting the report is substantially different from the address in the consumer’s file. When this occurs, users must comply with regulations specifying the procedures to be followed. Federal regulations are available at www.consumerfinance.gov/learnmore.

F. Users Have Obligations When Disposing of Records
 

Section 628 requires that all users of consumer report information have in place procedures to properly dispose of records containing this information. Federal regulations have been issued that cover disposal.

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 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 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 prior written authorization from the consumer. 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 post-employment 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 of the FCRA requires the following:

  • The user must disclose to the consumer that an investigative consumer report may be 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.

 

 

V.

SPECIAL PROCEDURES FOR EMPLOYEE INVESTIGATIONS

 

Section 603(x) of the FCRA provides special procedures for investigations of suspected misconduct by an employee or for compliance with Federal, state or local laws and regulations or the rules of a self-regulatory organization, and compliance with written policies of the employer. These investigations are not treated as consumer reports so long as the employer or its agent complies with the procedures set forth in Section 603(x), and a summary describing the nature and scope of the inquiry is made to the employee if an adverse action is taken based on the investigation.

VI.

OBLIGATIONS OF USERS OF MEDICAL INFORMATION

 

Section 604(g) of the FCRA limits the use of medical information obtained from consumer reporting agencies (other than payment information that appears in a coded form that does not identify the medical provider). If the information is to be used for an insurance transaction, the consumer must give consent to the user of the report or the information must be coded. If the report is to be used for employment purposes-- or in connection with a credit transaction (except as provided in federal regulations)--, the consumer must provide specific written consent and the medical information must be relevant. Any user who receives medical information shall not disclose the information to any other person (except where necessary to carry out the purpose for which the information was disclosed, or as permitted by statute, regulation, or order).

 

 

VII.

OBLIGATIONS OF USERS OF "PRESCREENED" LISTS

 

The FCRA permits creditors and insurers to obtain limited consumer report information for use in connection with unsolicited offers of credit or insurance under certain circumstances. Sections 603(l), 604(c), 604(e), and 615(d). This practice is known as "prescreening" and typically involves obtaining from a CRA a list of consumers who meet certain pre-established criteria. If any person intends to use prescreened lists, that person must (1) before the offer is made, establish the criteria that will be relied upon to make the offer and to grant credit or insurance, and (2) maintain such criteria on file for a three-year period beginning on the date on which the offer is made to each consumer. In addition, any user must provide with each written solicitation a clear and conspicuous statement that:

  • Information contained in a consumer's CRA file was used in connection with the transaction.
  • The consumer received the offer because he or she satisfied the criteria for credit worthiness or insurability used to screen for the offer.
  • Credit or insurance may not be extended if, after the consumer responds, it is determined that the consumer does not meet the criteria used for screening or any applicable criteria bearing on credit worthiness or insurability, or the consumer does not furnish required collateral.
  • The consumer may prohibit the use of information in his or her file in connection with future prescreened offers of credit or insurance by contacting the notification system established by the CRA that provided the report. The statement must include the address and toll-free telephone number of the appropriate notification system.

In addition, the CFPB has established the format, type, size and manner of the disclosure required by Section 615(d), with which users must comply.  The relevant regulation is 12 CFR 1022.54.

VIII.

OBLIGATIONS OF RESELLERS

A.

Disclosure and Certification Requirements

 

Section 607(e) of the FCRA requires any person who obtains a consumer report for resale to take the following steps:

  • Disclose the identity of the end-user to the source CRA.
  • Identify to the source CRA each permissible purpose for which the report will be furnished to the end-user.
  • Establish and follow reasonable procedures to ensure that reports are resold only for permissible purposes, including procedures to obtain:
    • the identity of all end-users;
    • certifications from all users of each purpose for which reports will be used; and
    • certifications that reports will not be used for any purpose other than the purpose(s) specified to the reseller. Resellers must make reasonable efforts to verify this information before selling the report.

B.

Reinvestigations by Resellers

 

Under Section 611 (f), if a consumer disputes the accuracy or completeness of information in a report prepared by a reseller, the reseller must determine whether this is a result of an action or omission on its part and, if to, correct or delete the information.  If not, the reseller must send the dispute to the source CRA for reinvestigation.  When any CRA notifies the reseller of the results of an investigation, the reseller must immediately convey the information to the consumer.

C.

Fraud Alerts and Resellers

 

Section 605(A)(f) requires resellers who receive fraud alerts or active duty alerts from another consumer reporting agency to include these in their reports.

IX.

LIABILITY FOR VIOLATIONS OF THE FCRA

 

Failure to comply with the FCRA can result in state government or federal government enforcement actions, as well as private lawsuits.  Sections 616, 617, and 621. In addition, any person who knowingly and willfully obtains a consumer report under false pretenses may face criminal prosecution. Section 619.

The CFPB’s website www.consumerfinance.gov/learnmore, has more information about the FCRA, including publications for businesses and the full text of the FCRA.

Para información en español, visite www.consumerfinance.gov/learnmore o escribe a la Consumer Financial Protection Bureau, 1700 G Street N.W., Washington, DC 20552.

A Summary of Your Rights Under the Fair Credit Reporting Act

The federal Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. There are many types of consumer reporting agencies, including credit bureaus and specialty agencies (such as agencies that sell information about check writing histories, medical records, and rental history records). Here is a summary of your major rights under the FCRA. For more information, including information about additional rights, go to www.consumerfinance.gov/learnmore or write to: Consumer Financial Protection Bureau, 1700 G Street N.W., Washington, DC 20552.

  • You must be told if information in your file has been used against you. Anyone who uses a credit report or another type of consumer report to deny your application for credit, insurance, or employment – or to take another adverse action against you – must tell you, and must give you the name, address, and phone number of the agency that provided the information.
  • You have the right to know what is in your file. You may request and obtain all the information about you in the files of a consumer reporting agency (your "file disclosure"). You will be required to provide proper identification, which may include your Social Security number. In many cases, the disclosure will be free. You are entitled to a free file disclosure if:
      • a person has taken adverse action against you because of information in your credit report;
      • you are the victim of identity theft and place a fraud alert in your file;
      • your file contains inaccurate information as a result of fraud;
      • you are on public assistance;
      • you are unemployed but expect to apply for employment within 60 days.

In addition, all consumers are entitled to one free disclosure every 12 months upon request from each nationwide credit bureau and from nationwide specialty consumer reporting agencies. See www.consumerfinance.gov/learnmore for additional information.

  • You have the right to ask for a credit score. Credit scores are numerical summaries of your creditworthiness based on information from credit bureaus. You may request a credit score from consumer reporting agencies that create scores or distribute scores used in residential real property loans, but you will have to pay for it. In some mortgage transactions, you will receive credit score information for free from the mortgage lender.
  • You have the right to dispute incomplete or inaccurate information. If you identify information in your file that is incomplete or inaccurate, and report it to the consumer reporting agency, the agency must investigate unless your dispute is frivolous. See www.consumerfinance.gov/learnmore or an explanation of dispute procedures.
  • Consumer reporting agencies must correct or delete inaccurate, incomplete, or unverifiable information. Inaccurate, incomplete or unverifiable information must be removed or corrected, usually within 30 days. However, a consumer reporting agency may continue to report information it has verified as accurate.
  • Consumer reporting agencies may not report outdated negative information. In most cases, a consumer reporting agency may not report negative information that is more than seven years old, or bankruptcies that are more than 10 years old.
  • Access to your file is limited. A consumer reporting agency may provide information about you only to people with a valid need – usually to consider an application with a creditor, insurer, employer, landlord, or other business. The FCRA specifies those with a valid need for access.
  • You must give your consent for reports to be provided to employers. A consumer reporting agency may not give out information about you to your employer, or a potential employer, without your written consent given to the employer. Written consent generally is not required in the trucking industry. For more information, go to www.consumerfinance.gov/learnmore.
  • You may limit "prescreened" offers of credit and insurance you get based on information in your credit report. Unsolicited "prescreened" offers for credit and insurance must include a toll‐free phone number you can call if you choose to remove your name and address from the lists these offers are based on. You may opt‐out with the nationwide credit bureaus at 1‐888‐567‐8688.
  • You may seek damages from violators. If a consumer reporting agency, or, in some cases, a user of consumer reports or a furnisher of information to a consumer reporting agency violates the FCRA, you may be able to sue in state or federal court.
  • Identity theft victims and active duty military personnel have additional rights. For more information, visit www.consumerfinance.gov/learnmore.

States may enforce the FCRA, and many states have their own consumer reporting laws. In some cases, you may have more rights under state law. For more information, contact your state or local consumer protection agency or your state Attorney General. For information about your federal rights, contact:

TYPE OF BUSINESS

CONTACT:

1.a. Banks, savings associations, and credit unions with total assets of over $10 billion and their affiliates.

b. Such affiliates that are not banks, savings associations, or credit unions also should list, in addition to the Bureau:

a. Bureau of Consumer Financial Protection 1700 G Street NW Washington, DC 20552

b. Federal Trade Commission: Consumer Response Center – FCRA Washington, DC 20580 (877) 382‐4357

2. To the extent not included in item 1 above:

a. National banks, federal savings associations, and federal branches and federal agencies of foreign banks

b. State member banks, branches and agencies of foreign banks (other than federal branches, federal agencies, and insured state branches of foreign banks), commercial lending companies owned or controlled by foreign banks, and organizations operating under section 25 or 25A of the Federal Reserve Act

c. Nonmember Insured Banks, Insured State Branches of Foreign Banks, and insured state savings associations

d. Federal Credit Unions

a. Office of the Comptroller of the Currency
Customer Assistance Group
1301 McKinney Street, Suite 3450
Houston, TX 77010‐9050

b. Federal Reserve Consumer Help Center
P.O. Box 1200
Minneapolis, MN 55480

c. FDIC Consumer Response Center
1100 Walnut Street, Box #11
Kansas City, MO 64106

d. National Credit Union Administration
Office of Consumer Protection (OCP)
Division of Consumer Compliance and Outreach (DCCO)
1775 Duke Street
Alexandria, VA 22314

3. Air carriers Asst. General Counsel for Aviation
Enforcement & Proceedings Department of Transportation
400 Seventh Street SW
Washington, DC 20590
4. Creditors Subject to Surface Transportation Board Office of Proceedings, Surface Transportation Board
Department of Transportation 1925 K Street NW Washington, DC 20423
5. Creditors Subject to Packers and Stockyards Act Nearest Packers and Stockyards Administration area supervisor
6. Small Business Investment Companies Associate Deputy Administrator for Capital Access
United States Small Business Administration
406 Third Street, SW, 8th Floor
Washington, DC 20416
7. Brokers and Dealers Securities and Exchange Commission
100 F St NE
Washington, DC 20549
8. Federal Land Banks, Federal Land Bank Associations, Federal Intermediate Credit Banks, and Production Credit Associations Farm Credit Administration
1501 Farm Credit Drive
McLean, VA 22102‐5090
9. Retailers, Finance Companies, and All Other Creditors Not Listed Above FTC Regional Office for region in which the creditor operates or Federal Trade Commission: Consumer Response Center – FCRA
Washington, DC 20580
(877) 382‐4357

Additional Information about the Fair Credit Reporting Act

The Summary of Your Rights provided above does not reflect certain amendments contained in the Consumer Reporting Employment Clarification Act of 1998. The following additional information may be important for you:

  • Records of convictions of crimes can be reported regardless of when they occurred.
  • If you apply for a job that is covered by the Department of Transportation’s authority to establish qualifications and the maximum hours for that job and you apply by mail, telephone, computer, or other similar means, your consent to a consumer report may validly be obtained orally, in writing, or electronically. If an adverse action is taken against you because of a consumer report for which you gave your consent over the telephone, computer, or similar means, you may be informed of the adverse action and the name, address and phone number of the consumer reporting agency, orally, in writing, or electronically.