Q: Does a bank that uses a consumer report have any new responsibilities to the consumer?
A: Yes. A bank must make disclosures to the consumer if it denies employment or credit or insurance for personal, family, or household purposes, or increases the cost, even partially because of information in a consumer report from a consumer reporting agency. It must advise the consumer orally or in writing that information in the report caused or contributed to the denial or increase in cost, and state the name and address of the consumer reporting agency issuing the report. The bank is not required to disclose the nature of the information in the report (16 CFR 615(a) – see question 56, which deals with the denial of employment based on a consumer report).