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