Q: A user “regularly and in the ordinary course of business” furnishes information to an NCRA regarding all of its consumer loans. Is the user required to furnish a confirmed address to the NCRA if the user receives a notice of address discrepancy in connection with an application for a car loan submitted by a consumer who already has a mortgage loan with the user?
A: According to 12 C.F.R.§ __.82(d) and 16 C.F.R. § 681.1(d) of the Address Discrepancy Rules, a user must have reasonable policies and procedures to furnish a consumer’s confirmed address to a consumer reporting agency if the user: (1) can form a reasonable belief that the consumer report relates to the consumer about whom the user requested the report; (2) establishes a continuing relationship with the consumer; and (3) regularly and in the ordinary course of business furnishes information to the consumer reporting agency from which the notice of address discrepancy relating to the consumer was obtained. If the three prongs of this test are met, the user must have reasonable policies and procedures to furnish a confirmed address to the NCRA that provided the consumer report. The user must comply with this requirement each time that it enters into a continuing relationship with a consumer, regardless of whether the consumer is an existing customer.
Accordingly, the fact that a consumer may have an existing mortgage loan with the user has no bearing on whether the user must furnish a confirmed address to the NCRA when the consumer obtains the car loan. Instead, if the consumer receives the car loan, thereby establishing a relationship between the user and the consumer, and the user can form a reasonable belief that the consumer report relates to the consumer, then the user would be expected to furnish the confirmed address. However, if the consumer does not receive the car loan, a new relationship is not established with the consumer and the user is not required to furnish a confirmed address in connection with the car loan according to 12 C.F.R. § __.82 and 16 C.F.R. § 681.1.