Q: Does a bank become a consumer reporting agency by transmitting information obtained from outside sources to another party involved in the same transaction?
A: No. The bank would not become a consumer reporting agency since it is a joint user of the same information with the other party involved in the same transaction. For example, a bank does not become a consumer reporting agency by transmitting such information to an insurer or guarantor (as in the case of the Federal Housing Administration (FHA), Veterans Administration (VA), private insurers, or insured student loan programs) to a participating bank in connection with the same transaction, or to a collection agency in connection with its efforts to collect on the transaction. Furthermore, the procurement and transmission of a consumer report to FHA, VA, or other similar insuring or guaranteeing entity is to determine whether the entity will issue its insurance or guaranty to the holder of an obligation and not whether it will issue insurance to the consumer involved.