Wednesday, June 29, 2011

You Must Send Out Adverse Action Letters!

Any changes that negatively affect the consumer require an Adverse Action letter to be sent to the applicant. The adverse action or declination letter must contain the following information: the name and address of the consumer reporting agency that issued the report; a statement that the consumer reporting agency did not make the decision to take adverse action; notice of the consumer's rights to obtain a free copy of the report within 60 days of the adverse action and the consumer's rights to dispute the accuracy and completeness of the information with the consumer reporting agency. FCRA Section 603(k). Rental Services, Inc. provides an "adverse action" or “declination letter” by selecting the DISCLOSURES & FORMS option at the bottom of the report results screen. You can also find a generic "adverse action" or consumer “declination letter” on the RSI website that can be modified to fit your needs.

Tuesday, June 28, 2011

FCRA Compliance Reminder

I wanted to remind all RSI clients that you have a responsibility to comply with the Fair Credit Reporting Act (FCRA). When requesting a background check you are required to have a permissible purpose. For the rental industry, that means that you can only obtain a consumer credit report in connection with screening a prospective applicant. Other permissible purposes exist and can be found in Section 604 of the FCRA.