Attachment A
Appendix N to Part 1022, Title 12 (up to date as of 1/20/2023) Appendix N to Part 1022, Title 12 Notice of User Responsibilities

This content is from the eCFR and is authoritative but unofficial.

Title 12 - Banks and Banking

Chapter X - Bureau of Consumer Financial Protection

Part 1022 - Fair Credit Reporting (Regulation V)

Authority: 12 U.S.C. 5512, 5581; 15 U.S.C. 1681a, 1681b, 1681c, 1681c-1, 1681c-3, 1681e, 1681g, 1681i, 1681j, 1681m, 1681s,

1681s-2, 1681s-3, and 1681t; Sec. 214, Pub. L. 108-159, 117 Stat. 1952.

Source: 76 FR 79312, Dec. 21, 2011, unless otherwise noted.

Appendix N to Part 1022 - Notice of User Responsibilities

The prescribed form for this disclosure is a separate document that is substantially similar to the Bureau's notice

with all information clearly and prominently displayed. Consumer reporting agencies may limit the disclosure to only

those items that they know are relevant to the user that will receive the notice.

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Appendix N to Part 1022, Title 12 (up to date as of 1/20/2023)

Notice of User Responsibilities Appendix N to Part 1022, Title 12

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All UM'rs or con umer reports niu t comply with all appUcable regulations.. Information about applicable 

r~ulations currently in -effect can be found at the Consumer Financial ProtetUou Bun>au' webs~ 

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NOTICE TO USERS OF CONSUMER REPORTS: 

OIJLIGATIONS OF USERS UNDER l~HE CRA 

Th Fair Credit Rep01tingAct (FCR ) 15 .S.C. 1681-1681y. requir • fhat this notice 

b~ pro ided to infonn users of con. umer reports of their legal bligations. Stat.e la,. ma_ 

imp se additional requirein nt . The te~1 ,ofthe FCRAis set forth in full at the Consunter 

Financial Pr t~ion Bureau' (CFPB) Y ebsite at ~ 'ffll . onsunwrfinau .. ,goy/J.aanwore. At 

the end of this do ument is a tit of United States Code citation for the FCRA~ Other 

it1fom1ation about user duties i al o available at the CFPB Wc;lb itc,. Users tnust ~onsult tlw 

1-elevant pro,r&ions of tbe FCRA for details about their obtigatioos under thf' FCRA. 

'Ille first s~ction of this mrunary ets forth tb rcspon. ibiliti s impo ed b the f'CRA. 

on aU u ers of consim1er reports. TI1 subsequent · ctions di cus th duties of u ers of reports 

that contain pecific type. of information,, or that arc used fOT c"rtain purpo e , and the legal 

cons.equcnc of violation . If ou arc a f umi her of inf om1ati n lo a con umcr reporting 

ag~ncy (CR ), you ha .e additional obligations and, ill recci ea separate notice from the 

CRA de cribing your dutie as a funtisher. 

I. OBLIGATIO S OF ALL SERS OF CONSU~lER REPORTS 

Con.gre · ha limited the u c of ii.Oil mn"'r reports to ptote t con umc:rs · pri vac . All 

us rs n,ust hav a perrnissibl purpo, e under th1,: FCR to obtain a con.sum r report. Se lion 

604 contains a list of th penni. siblc purpos s und · r th · la\ . lbes are: 

• · s ordered b a court or a federal grand jury subpoena. Section 604(a}(l} 

• As in tmeted by the con uruer in writing. Se<:tion 604{a}((2) 

• For the exten ion of credit as a r ult of an application from a consluner, or th 

re ie\1 or collection of a conLum r• account. Section 604(a){3XA} 

• For employment purpo • including hiring and promotion deci ions, h r~ the 

consum r has gi en writt n pem1issi011. Sections 604{a){3,)(B) and 604{b) 
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• For the underwritin.g of insurance as a result of an application from a consumer . 

S~ti2n §04{a.)(3)© 

• When there is a legitimate business need, in connection with a business 

transaction that is it1i\i1te4 by the consumer. Section 604(a}(3)(F)(j) 

• T,o 11eview a consumer's account to determine wbether the consumer continues to 

meet the terms of the account. Section 604(a}f3){.F)(ji) 

To determine a consumeii's eligibility fur a license or other benefit granted by a 

governmental instrumentality required by law to consider an applicant's fmancial 

responsibility or status. Section 604(a)(3)CD) . 

• For use by a potential investor or servicer, or current insurer1 in a valuation or 

assessment of the credit or prepayment risks associated with an existing credit 

obligatioa S~£9QD 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)(S) 

In addition,. creditors and insurers may ,obtain certain consumer report information for the 

purpose of ma.king •'prescreened'' unsolicited offers of credit or insurance~ Sm;tion 604(R). The 

partiicutar obligations of users of "piescroened" information are described in Section VII bel.ow. 

B. Usea Must Providc· CertifJ,1t11111 

Section 604(f) prohibits any person from obtaining a co.nsumer report from a consumer 

reporn.ng agency (CRA) unless the person has certified to the CRA the pennissible purpose(s) for 

which the report is being obtained and •certifies that the repo.rt will not be used for any other 

purpose. 

c . Usen Must &,tify Consumen When Adv4rac Actions Are Taken 

The term .,adverse action,. is defined very broadly by Section ,603. 1 Advme actions" 

include all business, credit, and employment act.ions affecting consumers that can be considered 

to .have a negative impact as defined by Section 603(k) o.f the FCRA - such as denying or 

canceling credit or insurance, or denying employment or promotion.. No adverse action occurs in 

a credit transaction wbere the creditor makes a counteroffer that is accepted by the consumer. 
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I. Adverse Actions Based on Information Obtained From a CRA 

If a user takes any type of adverse, a.ction as defined by the FCRA that is based at least in 

part on information contained in a consumer report, Section 6l5(a) requires the user to notify the 

consumer. The notification may be done in writin.g, orally, or by electronic means. It must 

include the following: 

• The name, addres-st and telephone number of tb.e 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 consumei's right to obtain a free disclosure of the 

consumer's file from the CRA if the consumer makes a request within 60 days. 

• A statement setfng forth tile consumers right to dispute di.fectly with the CRA 1the 

accuracy or completeness •Of any information provided by the CRA~ 

2. Adverse Actions Based on Infarmatton Obtained From Third Parties Who Are 

Not Consumer .Reportln,g Agencies 

lfa person denies (or increases the charge for) credit for personal, family, OT household 

purposes based ,either wholly or partly upon infonnation from a person othe.r than a CRA,. and the 

information is the type of consumer info~ation covered by the FCRA, Section 61 S(b )(I) 

requires that the mer 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 

foUowing: the consumer's written request. 

3. Adv,erse Actions Based on Information Obtained From Affiliates 

If a person talc.es an adverse action involving insurance, employment, ,or a credit 

transaction initiated by the con_sumer, based on information of the type covered by the FCRA,. 

and this information was obtained from an entity affiliated with the user of the infonnation by 

common ownership, or control, Section 61 S(h )(2) requires the user to notify the cons1Jmer •of the 

adverse action. The notice must inform the consumer that he or she may obtain a ctisclosW"e of 

the nature of the infonnation relied upon by making a written request within 60 days of rec,eiving 

the adverse action notice. H the consumer makes such a request, the user must disclose the 

nature of the infonnation not later than 30 days after receiving the request. If consumer report 

information is shared among affiliates and then used for an adverse action, the user must make an 

adverse action disclosure as set forth in I.C. l above. 
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D. Jisen 111,ye Qblicatio s Wbep Fraad and Adive Dah: l:Jititao: Alerts are ila File-s 

When a consumer has placed a fraud alert, including one relating to identity theft, or an active 

duty military alert \\1dn: a nationwide consmncr reporting agency as dcfincd in Section 603(p) and 

resellers, Sectjoo 605A(h) imposes limitations on users of 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 &.md alerts and active dllty alerts. the user must have reasonable 

polcies and procedures in place to form a belief that the user knows the identity of the applicant or 

contact die consumer at a tdcphonc number specified by the consumer; in the case of extended fraud 

alerts, the mer must contact the cottsumer' in accordance v.ith the contact information. provided in the 

consmncr 's alert. 

[. Users Ba,·e Obligatiops Wilen Notified of D Address Discrepapcy 

Section 605(.h) re-quir~s nationwide CRAs, as defined in Section 603(p), to ootify users that 

request reports when the address for a consmncr provided by the user in requesting the report is 

substantially ditferent from the addresses in the cOflSlm'l.ef·s file. Vlheo this occurs, users must comply 

with regulations specifying the procedures to be followed. Federal regulations are available at 

www.consm:netfinance.gov.flea.mm.ore. 

F. Use,s Ha,·e Obligatiops me■ DisOO!PW of Records 

Section 628 cequires that aD users of consumer report information have in place procedures to 

properly dispose of records containing this mfonnation_ Federal regulations have been issued that cover 

disposal. 

IL CREDITORS l\fUST MAKE ADDmONAL 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 tenns that are materially less f.M>rable than the most 

favorable terms available to a substantial proportion of consumers ftom 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 regu1ations prescribed by 1he CFPB. 

Section 609(g) requires a disclosure by a11 persons that make or .arrange loans secured by 

..... residential .... real .. property .. ( one .. to. four ... •) .... and .. that. use .. credit ... scores ...... These ... persons ... must ................................................. . 
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provide credit scores and other information about credit scores to .applicants, including the 

disclosure set forth 1n Section 609(g)( 1 )(D) ("Notice to the Home Loan Applicant•1, 

III. OBLIGATIONS OF USERS WHEN CONSUMER REPORTS ARE OBTAINED FOR 

EMPLOYMENT PURPOSES 

A. Employment Other Thao in the Truckin& lndu1t,n 

If information from a CRA is used for employment pmposes, the user has specific duties, 

which are set forth in Section 604(b) ofthe FCRA. The user must: 

• Make a clear and conspicuous written disclosure to tb.e consumer before the report 

is obtained. in a document that ,consists solely of the d1selosure, that a consumer 

report may be obtained. 

• Obtain from the consumer prior written autborizati.on. Authorization to access 

reports during the tenn 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 tuen 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 advetSe action, the user must provide a copy .of the repon to the 

consumer as well as the summary ofconsumer's rigb.ts. (The user should re<ieive 

this summary from the CRA.) A Section 61S(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 61 ~(b)(2) 

The procedures for inv,estigative consumer reports and employee misconduct 

investigations are set forth below. 

B. Employment in the Tnckin1 Jndustn 

Special Nies apply for truck drivers; where the only interaction between the ,cons.umel' ;and 

the potential employer is by mail telephone, or computer. In this c~, ,the consumer may 

provide consent orally or electioni.cally, and an adverse action may be made orally, in writing, or 

electronically. The oonsumer may obtain a copy of.any report relied upon by the trucking 
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company by eontactiog the company. 

IV. OBLIGATIONS WHEN INVESTIGATIVE CONSUl\fER REPORTS A.RE USED 

Investigative consumer reports are a special type of.consumer report in which information 

about a consumer's character, general reputatio~ personal characteristics, and mode of living is 

obtained through personal interviews by an. entity or petSOn that is a consumer reporting agency. 

Consumers who are the subj,ects of such reports are given special rights under the FCRA. If a 

user mtends to obtain an investigative consumer report, Section 606 requiTes tbe following: 

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

be obtained. This must be done in a written disclosure that is mailed, or od1erwise 

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 info.rming the c-0nsumer ,o.f his or her right to request additional 

disclosures of the nature and scope of the investigation as described below, an.d 

the summary of consumer rights iequired by Section 609 of the FCRA (The 

summary of consumer rights will be pro,vided by the CRA that co.nducts the 

investigation.) 

• The user must certify to the CRA that the disclosures set forth. abov,e hav,e been 

made and that the user will make the disclosure descdbed below. 

• Upon the written request ,of a consumer made witlrin a re.anable 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) pro,vides special procedures fur investigations of suspected mis.conduct by 

an ,employee or for compliance with Federal, stare or local · aws and regulations or the rules ofa 

self-regulatoty oiganizati.on, and compliance with written policies ofthe employer. The.,e 

mve-stigations ar:e not treated as consumer n:ports so long as the employer or its .agent complies 

with the procedures set forth in Section 603(x), and a summaiy describing the nature and scope 

of the inquiry is made to the employee if an advetSe actio.n is taken based on the investigation. 

VI. OBLIGATIONS OF USERS OF MEDICAL INFORMATION 

Section 604(g) limits the use of medical information obtained from consumer reporting 

agencies (other than payment infonnation ~ba,t appears in ,a coded form that does not identify the 
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medical pro ider). If the infonnation is to be u ed for an in t1rance transaction. the consumer must 

give consent to the user of the ix..-port or the :information mu too coded. If the report is to be u ~d 

for employment purposes -- or in conn ction with a credit transaction (except as pro,~ded in 

federal r~gulations) -· the consum r mu. t pro\·ide specific\ ritlen consent and them di al 

infonnation mu t be re1cvanl Any user who recei cs m~di.cal information shaJI no1 di cJosi.; th· 

information to an ot.h~r person (except where nc:cessary to carry out the purpose for which the 

infonnation wa~ disclosed, or as pennitted b. statute~ reguJation. or order). 

VU. OBLIGATIONS OF USERS OF "PRESCREENED-"' LISTS 

TI1e FCRA permits creditors and insurers to ob1ain limited conswner report information for 

u c in co,mection, ith unsolicited offi rs of credit or in uranc und r c rtain cir umstanc s. 

Sections 603( 1), 604( c ). 604( c ). and 6 l S(d). 'Jhis practice i known as "prl! ,cre~ning" and 

t •picaH involves obtaining from a CR · a list of consumers '1 ho moot certain pre stabli!ih d 

criteria. If an person intends to m;c pr~scr ,med lists. that person mu l fJ) b fore tlw offer i 

mad ~ stablish the criteria that , ill be relied upon lo make the offer and to grant er dit or 

insurance~ and (2) maintain such criteria on file for a three-y~ar ~riod beginning on the date on 

which the offer i ma.de to ach con um r. In addition, any us r must providt , ith ,each written 

. licitation a d~ar and con picuous stattment that; 

• btfonnation contained in a comumer' CR· file was used in connection witb the 

transaction. 

• '!be con wncr reccivc.;d the offer because he or she satisfied the criteria for credit 

worthiness or insurabi1it u .. ed to s,cre n for th off er. 

Credit or insurance may not be ext nded if, after th~ consumer r sponds, it is 

detem1ined that the consurn« does not meet the crit~ria used for screening or any 

applicable crit ria bearing on credit worthiness or insurabitity. or the consumer doe 

not fumi h required collateral. 

• The con mner may prohibit the u e of information in hi or her file in connection 

with future pre creened offers of credit. or insurance by contacting the notification 

ystcm c tabli hcd by th CRA that provid d the re.port. Th\} tatcmcot mu t 

include th1! addre and toll-free telephone number of the appropriat notilkation 

system. 

In addition lhe CFPB has establish~d the format~ type size, and manner of the disclosure 

r~quiredb Section6JS(d), with "\J hich u~rs must comply. ·n1e rdevant regulation i · 12 CFR 

. 1022.54 ..................................................................................................................................................................................................................................................................................................................................... 
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VIII. OBLIGATIONS OF RESELLERS 

A. Disclosure and Cerflftcation R.tggb;emenJ.1 

Section 607( e) requires any person who obtains a consumer report for resale to take the 

following step$; 

• Disclose the idendty of the end-user to the source CRA . 

Identify t.o the source CRA each permissible purpo.se for wh1ch the report will be 

furnished to the endMuser. 

• Establish and follow reasonable procedures to ensure that reports are resold only 

for permissible purposes, including prooedure-s to obtain: 

(l) the identity of all ,endRusers; 

(2) certifications from aU users of each purpose for which reports will be used; 

and 

(3) certifications that reports wiD .not be used for any purpose other than the 

purpose(s) specified to the reseJler. Resellers must make reasonable efforts to 

verify this infom1ation before selling the report4 

B. Reinvestieadons by R.eseUer1 

Under Section 6,l l(f), ifa consumer disputes the accuracy or completeness of 

information ia 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 so, correct or deJete 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 ,605A(f) requires resellers who receiv,e fraud alerts or active duty alerts from 

another ,consumer reponing agency to include these in their reports. 

IX. LIABILITY FOR VIOLATIONS OF THE FCRA 

Failure lo comply with the FCRA can result in state govemment or federal 

government enforcement actions, as well as private lawsuits. Si;ci.icms 616,617. and 621. In 

addition, any person who knowingly and willfully obtains a consumer report under fals.e 

pretenses may face criminal prosecution. Section 619. 

The CFPB s website, wv.rw.consumerfinance.gov/learnmore, has 1nore information 

.about .. the .. FCRA~ .. in_c)udi.ng publications .. f or busines.ses ... and .. the .. fu~.1 .. text .. of .the .. F ...... RA ............................... . 
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Citations for FCR.\ sections in the t.7.S. C4de, 15 t:.S.C. § 1681 et seq.: 

Section 602 15 C.S.C. 1681 Section 615 15 L-.s.C. 1681m 

Section 603 15 C .S.C. 1681a Se-ction 616 15 L-.S.C. 168 ln 

Section 604 15 U.S.C. 1681b Section 617 15 L"".S.C. 16810 

Section 605 15 C .S.C. 1681c Section 618 15 L .S.C. 1681p 

Section 605A 15 G.S.C. 168lcA Section 619 15 l:" .S.C. 1681g 

Section 605B 15 L.S.C. 1681cB Section 6 ... 0 15 C' .S.C. 1681r 

Section 606 15 t:aS.C. 1681d Section 621 15 {; .S.C. 1681s 

Section 607 15 ~-S.C. 168le Section 622 15 c .s.c_ 1681s-1 

Se-ction 608 15 t:.S.C. 168lf Section 623 15 U .S.C. 1681s-2 

Section 609 15 l7.S.C. 1681g Section 624 15 t:" .S.C. 1681t 

Sedion 610 15 C.S.C. 1681h Section 625 15 t~_s_c_ 1681u 

Section 611 15 t:.S.C. 1681i Section 626 1s r .s.c. 168h,. 

Section 612 15 C.S.C. 168lj Section 627 15 C.S.C. 1681w 

Section 613 15 L".S.C. 1681k Section 628 15 L'" .S.C. 1681x 

Section 614 15 t:.S.C. 16811 Section 629 1s 1.-.s_c_ 1681y 

[77 FR 67754, Nov. 14, 2012]