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Red Flag Alerts – Credit Report Discrepancies

Posted in News Articles on 08/01/2008

Effective November 1, 2008, all users of consumer reports must adhere to the regulations regarding address discrepancies whenever they obtain consumer reports from a nationwide credit reporting agency (CRA).  These regulations apply to all employers or other users of consumer reports and detail specific requirements of a user of these reports must follow when it receives notice of an address discrepancy from a nationwide CRA.

What constitutes an address discrepancy?  There are no hard and fast rules governing this as of yet, but it should encompass any significant discrepancy between the address an applicant has supplied and the address as reported by the CRA.  Minor typographical differences will probably not be considered a significant discrepancy.

All users of consumer reports should have in place a reasonable policy to verify the identity of a consumer should a notice of address discrepancy be received.  Once again, there are no hard and fast rules relating to this as of yet, but the policy should encompass a reasonable certainty that the address does or does not belong to the applicant.

What does this mean for employers?  Your company should be aware of the new requirements regarding identity theft regulations.  While BackTrack can assist you in becoming compliant with these regulations and how they affect your specific company, we do recommend consulting with your own legal counsel.

More information can be found by clicking here or by contacting BackTrack at 800-991-9694.