15 U.S.C. §1681m — Requirements on users of consumer reports
Imposes adverse-action notice duties on any user (including [LENDER]) that takes adverse action based in whole or in part on information in a consumer report. Also governs duties when adverse action is based on third-party (non-CRA) or affiliate information, and authorizes the Red Flags / address-discrepancy rules.
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Verbatim regulatory text
Verbatim provisions from 15 U.S.C. §1681m — Requirements on users of consumer reports — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
15 U.S.C. §1681m(a) — Duty to provide adverse-action notice
(a) Duties of users taking adverse actions on basis of information contained in consumer reports If any person takes any adverse action with respect to any consumer that is based in whole or in part on any information contained in a consumer report , the person shall—
15 U.S.C. §1681m(b)(1) — Adverse action based on non-CRA third-party information
Whenever credit for personal, family, or household purposes involving a consumer is denied or the charge for such credit is increased either wholly or partly because of information obtained from a person other than a consumer reporting agency bearing upon the consumer’ s credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living, the user of such information shall, within a reasonable period of time, upon the consumer’ s written request for the reasons for such adverse action received within sixty days after learning of such adverse action, disclose the nature of the information to the consumer. The user of such information shall clearly and accurately disclose to the consumer his right to make such written request at the time such adverse action is communicated to the consumer.
15 U.S.C. §1681m(c) — Reasonable procedures defense
No person shall be held liable for any violation of this section if he shows by a preponderance of the evidence that at the time of the alleged violation he maintained reasonable procedures to assure compliance with the provisions of this section.
15 U.S.C. §1681m(a) — adverse-action notice duties
(1) provide oral, written, or electronic notice of the adverse action to the consumer; (2) provide to the consumer written or electronic disclosure— (A) of a numerical credit score as defined in section 1681g(f)(2)(A) of this title used by such person in taking any adverse action based in whole or in part on any information in a consumer report; and (B) of the information set forth in subparagraphs (B) through (E) of section 1681g(f)(1) of this title ;