IMPORTANT NOTICE TO CURRENT SUBSCRIBERS
Because of a number of recent court decisions, we have been advised that creditors and other persons (with certain statutory exemptions) may be deemed to be “credit repair organizations” under Federal law if they perform, or represent that they can perform) activities that can improve a consumer’s credit record, credit history, or credit rating and the consumer pays for such services directly or indirectly. Such activities may include credit re-scoring, if the consumer pays for it, either at the time it is ordered or at closing.
As a result, the repositories (Experian™, Equifax™ and TransUnion™) have instituted a policy against consumers paying for any such services and Certified Credit Reporting, Inc. must comply with these policies. Therefore, in accordance with paragraph 5 of the contract between us, be advised as follows:
User understands that the Federal Credit Repair Organizations Act, 15 USC §1579 et seq. (“CROA”) provides that representing that a person can improve a consumer’s credit record, credit history or credit rating in return for the payment of money or other valuable consideration, or providing advice and assistance in doing so, can bring such a person within the definition of a “credit repair organization” under that law (see www.ftc.gov/os/statutes/croa/croa.shtm). User understands and agrees that all costs associated with improving a consumer’s credit history or credit score, including credit rescoring, are the sole responsibility of the User and may not be passed on or paid for by the consumer, either directly or indirectly. Any such activity may be grounds for termination of this Agreement.
In addition, we recommend that you consider a disclosure on your web site or other applicationtaking documents that states to the consumer that you are not a “credit repair service”, you do not undertake any responsibility to improve a consumer’s credit record, credit history or credit rating, and that no fees collected from the consumer will be used for that purpose.
You should consult with your own legal counsel on these matters.
Please contact your Sales Representative with any questions…all of us at CERTIFIED wish you a prosperous New Year and thank you for your continued partnership.
Last updated: June 18, 2009
Synthetic Identity Theft
A type of ID fraud in which thieves literally create new identities either by combining real and fabricated identifying information to establish new accounts with fictional identities or create the new identity from entirely fabricated information. In typical synthetic fraud, a fraudster uses a real Social Security number and combines it with a name other than the one associated with that number. The combination often doesn't display on the real consumer's credit report because the combination of information does not match the consumer's identity. A credit history for the fabricated identity is built up before eventually maxing out credit limits or taking out cash advances and skipping out on the bills.
Experian™ takes the protection and integrity of consumer information seriously and therefore any inquiries into Experian's™ file that are suspected of being associated with any type of identity fraud could result in the immediate permanent denial of access for the parties making the inquiries and full disclosure to law enforcement.
Vermont Fair Credit Reporting Statute, 9 V.S.A. § 2480e (1999)
§2480e. Consumer consent
- A person shall not obtain the credit report of a consumer unless:
- the report is obtained in response to the order of a court having jurisdiction to issue such an order; or
- the person has secured the consent of the consumer, and the report is used for the purpose consented to by the consumer.
- Credit reporting agencies shall adopt reasonable procedures to assure maximum possible compliance with subsection (a) of the section.
- Nothing in this section shall be construed to affect:
- the ability of a person who has secured the consent of the consumer pursuant to subdivision (a)(2) of this section to include in his or her request to the consumer permission to also obtain credit reports, in connection with the same transaction or extension of credit, for the purpose of reviewing the account, increasing the credit line on the account, for the purpose of taking collection action on the account, or for other legitimate purposes associated with the account; and
- the use of credit information for the purpose of prescreening, as defined and permitted from time to time by the Federal Trade Commission.
VERMONT RULES ***CURRENT THROUGH JUNE 1999***
AGENCY 06. OFFICE OF THE ATTORNEY GENERAL
SUB-AGENCY 031. CONSUMER PROTECTION DIVISION
CHAPTER 012. Consumer Fraud –Fair Credit Reporting
RULE CF 112 FAIR CREDIT REPORTING
CVR 06-031-012, CF 112.03 (1999)
CF 112.03 CONSUMER CONSENT
- A person required to obtain consumer consent pursuant to 9 V.S.A. §§2480e and 2480g shall obtain said consent in writing if the consumer has made a written application of written request for credit, insurance, employment, housing or governmental benefit. If the consumer has applied for or requested credit, insurance, employment, housing or governmental benefit in a manner other than in writing, then the person required to obtain consumer consent pursuant to 9 V.S.A. §§ 2480e and 2480g shall obtain said consent in writing or in the same manner in which the consumer made the application or request. The terms of this rule apply whether the consumer or the person required to obtain consumer consent initiates the transaction.
- consumer consent required pursuant to 9 V.S.A. §§ 2480e and 2480g shall be deemed to have been obtained in writing if, after a clear and adequate written disclosure of the circumstances under which a credit report or credit reports may be obtained and the purposes for which the credit report or credit reports may be obtained, the consumer indicates his or her consent by providing his or her signature.
- The fact that a clear and adequate written consent form is signed by the consumer after the consumer’s credit report has been obtained pursuant to some other form of consent shall not affect the validity of the earlier consent.