The combined notice, which includes the FCRA disclosure, is to be used when the creditor based its decision in whole or in part on information from a source other than the applicant or its own files. Disclosing that a credit report was obtained and used in the denial of the application, as FCRA requires, does not satisfy the ECOA requirement to disclose specific reasons.
The FCRA also requires a creditor to disclose as applicable, a credit score it used in taking adverse action along with related information including up to four key factors that adversely affected the consumer’s credit score. Appendix C of Regulation B includes model notices that satisfy both the ECOA and the FCRA requirements. For FCRA section 615(a) and (b) (Form C-1); For action based on information from an outside source other than a consumer reporting agency under FCRA section 615(b) Forms 2-5 are available.
A creditor must provide the section 615(a) disclosure when adverse action is taken against a consumer based on information from a consumer reporting agency. A creditor must provide the section 615(b) disclosure when adverse action is taken based on information from an outside source other than a consumer reporting agency. In addition, a creditor must provide the section 615(b) disclosure if the creditor obtained information from an affiliate other than information in a consumer report or other than information concerning the affiliate’s own transactions or experiences with the consumer. Creditors may comply with the disclosure requirements for adverse action based on information in a consumer report obtained from an affiliate by providing either the section 615(a) or section 615(b) disclosure.