provided to inform users of consumer reports of their legal obligations. The first section of this summary sets forth the responsibilities imposed by the FCRA on all users of consumer reports. The subsequent sections discuss the duties of users of reports that contain specific types of information, or that are used for certain purposes, and the legal consequences of violations.
New Jersey Notice To Users Of Consumer Reports — Obligations Of Users Under The FCRA The New Jersey Notice To Users Of Consumer Reports is a mandatory requirement under the Federal Fair Credit Reporting Act (FCRA) that outlines the obligations and responsibilities of users who obtain consumer reports for various purposes. These reports contain sensitive information about individuals, which makes it crucial for users to understand their obligations and handle the information responsibly. The FCRA serves to protect consumers' rights by regulating the collection, dissemination, and use of consumer information by consumer reporting agencies (Crash) and the users of consumer reports. The New Jersey Notice specifically addresses obligations that users must adhere to when using consumer reports for credit decisions, employment purposes, insurance underwriting, and other permissible purposes. When using consumer reports for credit decisions, users in New Jersey must comply with the FCRA provisions, which include: 1. Permissible Purpose: Users of consumer reports must have a valid reason or permissible purpose for obtaining the reports. These may include evaluating an individual's creditworthiness, reviewing credit for employment purposes, or extending credit to consumers. 2. Written Disclosure and Authorization: Before obtaining a consumer report, users must provide written disclosure to the consumer, informing them that a report may be obtained for employment or credit purposes. They must also obtain the consumer's written authorization to procure the report. 3. Certification to Crash: Users must certify to the Crash that they have a permissible purpose, have obtained written consent from the consumer, and will comply with all FCRA obligations. 4. Adverse Action Notice: If the user takes adverse action against the consumer based on the information in the report, they must provide written notice to the consumer containing specific information, such as the name, address, and contact information of the CRA that provided the report. 5. Disposal of Consumer Information: Users must properly dispose of consumer information, whether in paper or electronic form, to protect individuals' privacy. This includes reasonable measures to prevent unauthorized access or use of the information. The New Jersey Notice also covers obligations specific to users of consumer reports for employment purposes, insurance underwriting, and tenant screening. These obligations may include additional disclosure requirements, obtaining consent from applicants, and providing adverse action notices if necessary, depending on the purpose for which the consumer report is used. It is important for all users of consumer reports in New Jersey to familiarize themselves with the FCRA and its obligations to ensure compliance and protect consumer rights. Failure to comply with these obligations may result in legal consequences and potential liability for the user.
