| Q: |
The Client Reports Section Indicates that I have to certify that I have a:
"permissible purpose to obtain this report"
What are the permissible purposes?
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| A: |
Please refer to Section
2 of the User
Agreement and the Regulatory
Notices. They explicitly list the permissible purposes. |
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| Q: |
In Section
2 of the User
Agreement. It says that :
"You may obtain a report if, The client is not an individual
or,....The client is an individual and, You intend to use the
information in connection with a credit transaction involving the
client on whom the information is to be furnished and involving the
extension of credit to, or review or collection of an account of,
the client;"
What constitutes "the extension of credit"?
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| A: |
A definition can be found here: §
202.2(q), the definitions section of Regulation
B, which is issued by the Board of Governors of the Federal
Reserve System pursuant to title VII (Equal Credit Opportunity Act) of
the Consumer Credit Protection Act, as amended (15 U.S.C. 1601 et
seq.). Except as otherwise provided, this regulation applies to all
persons who are creditors, as defined in § 202.2(1). We suggest
you seek the advice of an attorney for further explanation or
interpretation. |
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| Q: |
In §
202.2(q), the definitions section of Regulation
B. It says that :
"Extend credit and extension of credit mean the granting of credit
in any form...."
What is the definition of "credit"?
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| A: |
A definition can be found here: §
202.2(j), the definitions section of Regulation
B, which is issued by the Board of Governors of the Federal
Reserve System pursuant to title VII (Equal Credit Opportunity Act) of
the Consumer Credit Protection Act, as amended (15 U.S.C. 1601 et
seq.). Except as otherwise provided, this regulation applies to all
persons who are creditors, as defined in § 202.2(1). We suggest
you seek the advice of an attorney for further explanation or
interpretation. |
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| Q: |
In §
202.2(j), the definitions section of Regulation
B. It says that :
"Credit means the right granted by a creditor to an
applicant to defer payment of a debt, incur debt and defer its
payment, or purchase property or services and defer payment therefor."
What is the definition of "creditor "?
|
| A: |
A definition can be found here: §
202.2(l), the definitions section of Regulation
B, which is issued by the Board of Governors of the Federal
Reserve System pursuant to title VII (Equal Credit Opportunity Act) of
the Consumer Credit Protection Act, as amended (15 U.S.C. 1601 et
seq.). Except as otherwise provided, this regulation applies to all
persons who are creditors, as defined in § 202.2(1). We suggest
you seek the advice of an attorney for further explanation or
interpretation. |
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|
| Q: |
In §
202.2(j), the definitions section of Regulation
B. It says that :
"Credit means the right granted by a creditor to an applicant
to defer payment of a debt, incur debt and defer its payment, or
purchase property or services and defer payment therefor."
What is the definition of "applicant "?
|
| A: |
A definition can be found here: §
202.2(e), the definitions section of Regulation
B, which is issued by the Board of Governors of the Federal
Reserve System pursuant to title VII (Equal Credit Opportunity Act) of
the Consumer Credit Protection Act, as amended (15 U.S.C. 1601 et
seq.). Except as otherwise provided, this regulation applies to all
persons who are creditors, as defined in § 202.2(1). We suggest
you seek the advice of an attorney for further explanation or
interpretation. |
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| Q: |
I read §
202.2(e), of the definitions section of Regulation
B, but I am unclear if my Client would qualify as an "applicant",
is there information that can provide more clarity on this situation? |
| A: |
Further interpretation can be found here: §
202.2(f)(3) Interpretation, the official staff interpretation of Regulation
B (12 CFR Part 202) issued under authority delegated by the
Federal Reserve Board to officials in the Division of Consumer and
Community Affairs. References are to sections of the regulation or the
Equal Credit Opportunity Act (15 U.S.C. 1601 et seq.). We
suggest you seek the advice of an attorney for further explanation or
interpretation. |
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| Q: |
Section 5(e)(ii) of the Member Agreement states that I must give a
number of notices when I take an Adverse Action with respect to any
Client. What do the details of the notices that accompany an
Adverse Action typically say? |
| A: |
We
suggest you seek the advice of an attorney for explanation or
interpretation of any provision that might involve the Fair Credit
Reporting Act. The following sample notice may be used to start
the discussion with your attorney:
"You have the right to dispute the accuracy of the information
that was used to determine this adverse action directly with the
company that provided it. To do so, you should contact The
Better Client Service LLC, PO Box 1230, Midland, MI 48641,
248-341-3818. You also have the right to obtain a free
disclosure of your file from the company if you request the report
within 60 days". |
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