Q: How do the Address Discrepancy Rules apply to a reseller or other person that obtains consumer reports from one or more of the three NCRAs for purposes of resale?
A: A user of consumer reports that receives a notice of address discrepancy from a reseller or other person that procures consumer reports for resale (“procurer”) from one or more of the three NCRAs must comply with applicable portions of the Address Discrepancy Rules. In these circumstances, the reseller or procurer is acting on behalf of the NCRA.
For all notices of address discrepancy received from such resellers or procurers, the user would be obligated to develop and implement reasonable policies and procedures to enable it to form a reasonable belief that the consumer report relates to the consumer about whom it has requested the report. However, the user must have reasonable policies and procedures to furnish the consumer’s confirmed address to an NCRA only if the three-prong test set out in 12 C.F.R. § __.82(d) and 16 C.F.R. § 681.1(d) of the Address Discrepancy Rules (discussed below in IV.C.1) applies: in other words, only if (1) the user regularly and in the ordinary course of business furnishes information to the NCRA from which the notice of address discrepancy was obtained by the reseller or procurer, (2) the user can form a reasonable belief that the consumer report relates to the consumer about whom the user requested the report, and (3) the user establishes a continuing relationship with the consumer. If the consumer report does not indicate from which NCRA the notice of address discrepancy was obtained (for example, in the case of a merged report), the user’s reasonable policies and procedures would not need to provide for the furnishing of confirmed addresses.