What Do You Mean, I’m a Credit Bureau?

1. What Do You Mean, I’m a Credit Bureau? National Public Records Research Association2010 Annual ConferenceOctober 9, 2010 New Orleans, Louisiana By John L. Culhane, Jr. Ballard Spahr LLP 1735 Market Street Philadelphia, PA 19103 215-864-8535culhane@balladspahr.com DMEAST #12978904v1

2. The Fair Credit Reporting Act • Originally became effective on August 25, 1971 • Major Amendments in 1996 (CCRA) and 2003 (FACTA) • Regulates Consumer Reporting Agencies • Places Duties on Furnishers of Information • Places Restrictions on Users of Consumer Reports

3. Key Definitions – Consumer Reporting Agency Any person which for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purposes of furnishing consumer reports to third parties, and which uses any means or facility of interstate commerce for the purpose of preparing or furnishing consumer reports.

4. Key Definitions – Consumer Report Any written, oral or other communication of any information by a consumer reporting agency bearing on a consumer’s credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer’s eligibility for: (A) credit or insurance to be used primarily for personal, family or household purposes (B) employment purposes or (C) any other purpose [for which a consumer report may be furnished]

5. Duties of Furnishers • Report Accurately • Correct and Update Information • Respond to Notices of Disputes from Consumers • Respond to Notice of Disputes from Consumer Reporting Agencies

6. Where Public Record Vendors Allegedly Fall Short – Furnisher Allegations • Accuracy • Correcting and Updating Information • Responding to Notices of Dispute from Consumers • Responding to Notices of Dispute from Consumer Reporting Agencies

7. Duties of Consumer Reporting Agencies • Follow Reasonable Procedures to Assure Maximum Possible Accuracy of Information • Delete Stale Information from Consumer Reports • Provide Consumer Reports only for Permissible Purposes • Disclose Information in Consumer’s File to Consumer On Request – Free Annual Disclosure • Investigate Disputed Information

8. Where Public Record Vendors Allegedly Fall Short • Accuracy • Disclosure of Information in Consumer File On Request – Free Annual Disclosure • Investigation of Disputes

9. Why Plaintiff’s Attorneys Love to Sue Under the Fair Credit Reporting Act • Sympathetic Plaintiffs • Sympathetic Legal Issues • Class Action Potential • Favorable Damages Provisions • No Arbitration Defense

10. How to Minimize Your Chances of Being Sued • Provide Contact Information • Provide a Mechanism for Resolving Disputes • Review the Way You Sell Your Services • Review the Way You Gather Information • Review the Way You Store Information • Review the Way You Transmit Information