When it comes to fraud alerts on credit reports, financial institutions want to ensure they not only identify these alerts when they appear but also that they are doing what’s required. The Fair Credit Reporting Act states, no user of a consumer report that includes an initial fraud alert or an active duty alert…may establish a new credit plan…unless the user utilizes reasonable policies and procedures to form a reasonable belief that the user knows the identity of the person making the request. Failure to comply with these requirements might result in your financial institution being liable for extending unauthorized credit.
Kevin explains more in the video.
Published
2024/08/06
Kevin brings years of experience and a unique perspective on regulatory matters to our clients. A self-proclaimed geek and accredited CRCM, Kevin is also a recovering attorney with experience as in-house counsel for a large regional bank and one of the leading national title insurance providers. For reasons unknown, Kevin decided to leave the safety and serenity of his desk job to seek fortune and glory as a wandering adventurer. Like a bank compliance version of Kwai Chang Caine, The Man with No Name or Don Quixote, he now travels the land seeking to help those in need and righting compliance wrongs, wherever he may find them. Kevin lives in Sioux Falls with his two children, who are surprisingly normal after having endured their father’s vivid imagination for their entire lives. He won’t admit to having any hobbies, because apparently “Regulations never sleep.” (While he does say this in his Batman voice, we’re pretty sure he’s joking.) From the looks of his Facebook page, he likes the outdoors and spending time with his large extended family (who seem like relatively normal people).
