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Reinvestigation, Disclosures, Disposal of Consumer Information

Reinvestigation, Disclosures, Disposal of Consumer InformationReinvestigation, Disclosures, Disposal of Consumer Information

Summary

As a real estate professional, your obligation under the Fair Credit Reporting Act does not end with the notification of your applicant’s approval or adverse action. Reinvestigation, disclosures, and disposal of consumer information is also part of your job. It is important for you to understand your role in each of these processes and in maintaining and communicating the information you’ve used to come to a decision in regard to each and every rental application.

[.blog-disclaimer-text]Disclaimer: This article is not legal advice. Legal information is not the same as legal advice, where an attorney applies the law to your specific circumstances. Consult an attorney for advice on your interpretation of this information or its accuracy. You may not rely on this article as legal advice, nor as an endorsement of any particular legal understanding.[.blog-disclaimer-text]

FCRA Reinvestigation

CRAs must respond to a dispute by:

  • Making a good faith effort to determine the accuracy of the disputed item.
  • Checking with original sources or other reliable sources.
  • Conducting a reinvestigation that must be more than a “cursory investigation” of the reliability of information. It must be completed within 30 days.
  • Considering any information provided by the consumer.
  • Terminating the reinvestigation if the dispute is “frivolous or irrelevant.”
  • “Promptly” deleting inaccurate information.
  • Notifying the consumer of results.
  • Noting on subsequent reports that the information is disputed unless it determines the dispute is “clearly frivolous.”  
  • Appending the disputed record at the time the investigation is closed.  No notation is required if plaintiff is right.

FCRA Disclosures

Consumers have the right to make a request to see what is in their file.  A file is all information maintained by the consumer reporting agency on the consumer.  CRAs are required to provide consumers with all information in the file, identify the sources of information, identify each person who has obtained a copy of the report and provide a summary of rights under the FCRA.

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FCRA Disposal of Consumer Information

Consumer reports are highly confidential and must be disposed of properly.  CRAs must take reasonable measures to protect against unauthorized access to information.  Reasonable measures to protect against unauthorized access to information include burning, pulverizing or shredding, destroying or erasing electronic data, or contracting with records disposal companies.

Continue to What is a Consumer Report?, or jump to a different article.

  1. Fundamentals of The Fair Credit Reporting Act (FCRA)
  2. Industry Players Under FCRA
  3. Accuracy and Reasonable Procedures
  4. FCRA Permissible Purpose
  5. Adverse Action Notification
  6. Reinvestigation, Disclosures, Disposal of Consumer Information
  7. What is a Consumer Report?
  8. A summary of consumer rights under FCRA
  9. FCRA Litigation
  10. State Versions of FCRA and FCRA California

Cap Rate Calculator

rentspree illustration of calculator

How to use

Enter information in the boxes below to calculate the comparative value of a piece of property in order to determine if it would be a good investment for you.

Property Value

Current market price or listed value
$

Yearly earnings

Anything you make a profit from that has to do with the property
$
$
$
Total A:

$

0.00

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Yearly Expenses

Anything you make a profit from that has to do with the property
$
$
$
$
$
$
Total B:

$

0.00

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Cap rate

0.00

%

Cap rate

$
$

0.00%

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Commission Calculator

How to use

Enter information in the boxes below to calculate the comparative value of a piece of property in order to determine if it would be a good investment for you.

Property Price

$

Commission Percentage

%
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Total Commission

$

0.00

Commission for Each Agent

$

0.00

Total Amount Seller Receives

$

0.00

Rent to Income Ratio Calculator

How to use

Enter information in the boxes below to calculate the comparative value of a piece of property in order to determine if it would be a good investment for you.

Rent-to-Income Ratio Calculator

$
$
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Rent-to-Income Ratio:

0

%

Move-in Move-out Calculators

Move-In Calculator

$
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1st Month's Prorated Rent:

$

0.00

Additional Move-In Costs (optional)

$
$
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Total Move-In Cost:

$

0.00

Move-out Calculator

$
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Move-Out Prorated Rent:

$

0.00

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