ID Theft Red Flags FAQ IVC3 – Is a user furnishing information “regularly and in the ordinary course of business” if the user only furnishes information to an NCRA regarding delinquent accounts?

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Q:  Is a user furnishing information “regularly and in the ordinary course of business” if the user only furnishes information to an NCRA regarding delinquent accounts?
 
A:  Whether a user regularly and in the ordinary course of business furnishes information to an NCRA does not depend upon the type or comprehensiveness of the information that the user regularly reports.  If the user regularly and in the ordinary course of business furnishes information to the NCRA from which it received the notice of address discrepancy and the other two prongs of 12 C.F.R. § __.82(d) and 16 C.F.R. § 681.1(d) (set out above under IV.C.1) are met, then the user must have reasonable policies and procedures to furnish a confirmed address to the NCRA from which it received the notice of address discrepancy. 
 
A user that only infrequently reports delinquent information (e.g., a small landlord that reports on delinquent tenants on an ad hoc basis) generally would not be considered to be reporting regularly and in the ordinary course of business.
 
 
ADDITIONAL INFORMATION:
This information was obtained from the Interagency FAQs for Identity Theft Red Flags and Address Discrepancies - https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20090611a1.pdf
 
 

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