THE SPORTS COMPLIANCE COMPANY SERVICE AGREEMENT

 

This The Sports Compliance Company  Service Agreement (this “Agreement“) is into by and between The Sports Compliance Company with offices located at 8 The Green Suite A Dover DE 19901 (“SCC“) and you or the entity on whose behalf you are accepting this Agreement, as applicable (“Client, “You“, or “Your“). This Agreement sets forth the terms and conditions that govern Your access to and use of the The Sports Compliance Company platform (“Platform“), the The Sports Compliance Company  screening services available via the Platform (“Services“), the The Sports Compliance Company Hotline (“Hotline”), and the The Sports Compliance Company Filing Services (“Filing”). 

 

BY CHECKING THE BOX INDICATING ACCEPTANCE OF THIS AGREEMENT AND CLICKING THE BUTTON TO CONTINUE, OR BY OTHER MEANS PROVIDED BY SCC FOR ACCEPTANCE, YOU (A) ACCEPT THIS AGREEMENT AND AGREE THAT YOU ARE LEGALLY BOUND BY ITS TERMS EFFECTIVE AS OF THE DATE OF ACCEPTANCE (“EFFECTIVE DATE”); AND (B) REPRESENT AND WARRANT THAT: (I) YOU ARE OF LEGAL AGE TO ENTER INTO A BINDING AGREEMENT; AND (II) IF YOU ARE ENTERING INTO THIS AGREEMENT FOR A CORPORATION, GOVERNMENTAL ORGANIZATION, OR OTHER LEGAL ENTITY, YOU HAVE THE RIGHT, POWER, AND AUTHORITY TO ENTER INTO THIS AGREEMENT ON BEHALF OF SUCH LEGAL ENTITY AND BIND SUCH LEGAL ENTITY TO THIS AGREEMENT AND ANY REFERENCES TO ‘YOU’ OR ‘YOUR’ IN THIS AGREEMENT REFER TO SUCH ENTITY AND ALL OF ITS EMPLOYEES, CONTRACTORS, AGENTS AND REPRESENTATIVES. IF YOU DO NOT AGREE TO THE TERMS AND CONDITIONS OF THIS AGREEMENT, YOU MUST NOT ACCEPT OR SIGN THIS AGREEMENT AND MAY NOT USE THE PLATFORM OR SERVICES.

 

1.         Account Registration; Credentialing. You must complete the account registration and credentialing process by providing SCC with current, complete and accurate information as requested by SCC. SCC will not provide Services to You until Your account has been approved by SCC. Your affiliates and subsidiaries, if any, may not use SCC’s Services under this Agreement. Any affiliate or subsidiary of Client must enter into a separate agreement with SCC for the access to and use of the Platform and Services. If Client has businesses in different states, each state must enter into a separate agreement with SCC.  You may access and use the Platform and Services through Your account solely for the benefit of Your internal business purposes and is in accordance with the terms of this Agreement. You agree not to share Your password(s), account information, or access to the Services with any other person. You are responsible for maintaining the confidentiality of password(s) and account information, and You are responsible for all activities that occur through the use of Your password(s) or account(s) or as a result of Your access to the Platform and Services. You agree to notify SCC immediately of any use of Your password(s) or account(s) that You did not authorize or that is not authorized by this Agreement.

 

2.         Screening Reports; Restrictions on Use. 

2.1.         The parties agree SCC’s provision of consumer reports and/or investigative consumer reports (collectively, “Screening Reports”), as those terms are defined by the Fair Credit Reporting Act, as amended (“FCRA”) is subject to (i) You executing an End User Certification, the terms of which are incorporated by this reference as if fully set forth herein, and (ii) SCC approving Your account. You agree to obtain and use any Screening Report solely for the permissible purpose designated by You during the account registration process and in accordance with the End User Certification. You are responsible for ensuring that Your use of the Services and Screening Reports comply with all applicable local, state, federal and international laws, rules, regulations or requirements, including, but not limited to the FCRA. 

2.2.         You agree not to provide any part of the Services or Screening Reports to third parties, whether directly or indirectly, through incorporation in a database, report or otherwise except as explicitly permitted by this Agreement.

 

3.         Refunds, Payment and Pricing

3.1        We do not provide refunds.  We are a service-based business and all work performed is at a cost to the Company.  

3.2.       Payment. You agree to provide SCC with valid and current credit card information and shall pay SCC for each Service You order at the time of transaction, including any applicable Fees and/or taxes. You hereby authorize SCC to charge the credit card provided for any Services ordered. ALL REQUESTS FOR SERVICES IS PAYABLE WHEN WORK IS COMPLETED, TYPICALLY SAME-DAY.  OUR HOURLY RATE IS BETWEEN $295.00 AND $750 PER HOUR AND IS BILLED IN 15-MINUTE INCREMENTS. SHOULD CLIENT NOT PAY FOR SERVICES RENDERED YOU AUTHORIZE SCC TO CHARGE THE CREDIT CARD ON FILE. 

3.3         Pricing. You agree to pay the applicable charge(s) for the Services You order at the price set forth and presented to you You at the time of order (“Pricing”). Unless otherwise specifically noted at the time of order, You understand and acknowledge that Pricing excludes, and the Services may incur, additional fees (“Post-Order Fees”). Post-Order Fees, if any, will be charged to your credit card. Such Fees are subject to change without notice. Pricing is exclusive of, and You will pay, any taxes relating to this Agreement applicable to You. SCC reserves the right to adjust Pricing of any Service at any time and without notice. You understand and agree that You are responsible for the payment of all transaction-based charges once You place and order for a Service, including orders for Screening Reports resulting (i) in a return of “clear,” “unable to verify,” or other similar result, and/or (ii) from User error in inputting data, duplicate order entries, and/or cancellations for any reason other than SCC’s breach of this Agreement. 

 

4.         Confidentiality 

4.1         You shall not disclose any Screening Reports, or any portion thereof, provided to You by SCC hereunder except as permitted by this Agreement, required by law, or to the subject of the report. 

4.2         Each party (“Recipient”) will treat, and take all reasonable and necessary steps to prevent the disclosure of, all information provided by the other party (“Discloser”) that Discloser designates in writing to be confidential (or that would be understood to be confidential by a reasonable person) in the same manner as Recipient treats its own confidential information (which shall be no less than a reasonable degree of care). Discloser represents and warrants that it has all necessary legal rights, title, consents and authority to disclose such confidential information to Recipient. Confidential information shall not include information that (i) is or becomes a part of the public domain through no act or omission of Recipient; (ii) was in Recipient’s lawful possession prior to Discloser’s disclosure to Recipient; (iii) is lawfully disclosed to Recipient by a third-party with the right to disclose such information and without restriction on such disclosure; or (iv) is independently developed by Recipient without use of or reference to the confidential information. You shall not disclose the Pricing or terms of this Agreement to any third party, except as required by applicable law. 

 

5.         Platform; Processing of Client Data

5.1         You shall not, and shall ensure that Your users do not: (i) use the Platform to upload, transmit, or otherwise distribute any content that is threatening, defamatory, fraudulent, infringing, or otherwise unlawful; (ii) store, submit, or distribute viruses, worms, time bombs, malicious code, or any other items of a harmful nature; (iii) use the Platform for any unlawful purpose or to engage in any activity that violates applicable law or the rights of others; (iv) engage in any activity that interferes with or disrupts the Platform or third party data contained therein; (v) attempt to gain unauthorized access to the Platform or its related systems or networks; or (vi) make derivative works of, disassemble, or attempt to reverse compile or reverse engineer any part of the Platform or Services, or access the Platform in order to build a similar or competitive product or service (or contract with a third party to do so). 

5.2         SCC will maintain reasonable safeguards for the Platform designed to protect the security, confidentiality and integrity of the information, data and other content, in any form, that is provided, entered or uploaded by You to the Platform (“Client Data”), including without limitation information about identified or identifiable individuals (“ Client Personal Information” or “Client PI”). SCC shall not process Client Data except as necessary to: (a) provide the Services as documented in this Agreement; (b) comply with Your otherwise documented instructions, subject to the terms of this Agreement; or (c) comply with applicable law. You hereby authorize SCC to retain Client Data as necessary to comply with its obligations under applicable law or a contract with a third-party source of Client Data. SCC does not intend, and makes no guarantee, to retain Client Data for more than seven years after the date SCC received it. You hereby authorize SCC to Anonymize Client PI after that time has passed. “Anonymize” means to make identifying information permanently unreadable and unrecoverable so that any remaining information can no longer be associated with Your or a data subject, taking into account all means reasonably likely to be used to reidentify the information. 

5.3         You shall provide a notice or disclosure to, and, if necessary, collect consent or authorization from data subjects for the transfer of Client PI to SCC and the Processing of Client PI by SCC as required by applicable law. SCC may make available to You its systems or sample text for these purposes. You acknowledge that Your use of SCC’s systems or sample text does not relieve You of Your responsibility for compliance with notice, disclosure, authorization and consent provisions in applicable law. 

5.4         The Platform and Services may be provided to You by SCC and/or SCC’s subsidiary and affiliate companies. Additionally, You hereby authorize SCC to use third parties to process Client Data on behalf of SCC (“Sub-Processors”), provided that (a) SCC shall sign a written agreement with each Sub-Processor that imposes obligations on that Sub-Processor that are no less stringent than those required of SCC under applicable law and this Agreement; and (b) SCC will not be relieved of any of its obligations under this Agreement by engaging Sub-Processors. 

5.5         You acknowledge that the nature of the Services may require disclosure of Client Data to, and collection of Client Data from, third parties that are not SCC Sub-Processors, including without limitation government or regulatory authorities or the data subject’s current and past employers or educational institutions. Your request for Services will be deemed to be Your instruction to SCC to disclose such Client Data to, and collect Client Data from, third parties that are not Sub-Processors as necessary to perform those Services. 

5.6         You acknowledge and authorize the following: (a) SCC stores Client PI in United States, Canada and Ireland; (b) SCC operates in, and may access Client PI from Canada, India, the Philippines, the United Kingdom, and the United States; (c) SCC may add additional locations for storage or Processing of Client PI after giving reasonable advance notice to Client; (d) the nature of the Services may require SCC to transfer data to third parties or Sub-Processors located in other countries; and (d) notwithstanding any restriction to these cross-border data transfers to which the parties have agreed, SCC may transfer data across borders if it is necessary to ensure business continuity and recovery in case of emergency, except as prohibited by applicable law. 

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6.         Ownership 

6.1         Except for the rights expressly granted to SCC in this Agreement, You shall retain all right, title and interest to Client Data. Notwithstanding the foregoing, SCC may compile, extract or anonymize data from Client Data in connection with its performance of the Services in aggregate statistical form in such a way that neither the individual(s) being screened nor You can reasonably be identified, and SCC will own all right, title and interest in such compiled, extracted or anonymized data. SCC shall retain all right, title and interest in and to the Platform and all technology and software used to provide it, including all modifications and/or enhancements to the Platform, regardless of the source of inspiration. 

 

7.         Disclaimers 

7.1         You acknowledge (a) that the depth of information collected by SCC varies among sources and SCC cannot act as an insurer or guarantor of the accuracy, reliability or completeness of the data, and (b) that the information that SCC discovers with respect to the subject of a background check report is subject to the reporting limitations of the FCRA and other applicable law. SCC will perform the Services using the information provided to SCC by You, Your Users or Your candidates. In no event shall SCC be held responsible for any inaccurate or incomplete Screening Reports that are the result of You, Your Users or Your candidates providing SCC with inaccurate or incomplete information. 

7.2         SCC may from time to time offer information, guidance, forms, materials, and/or other content (including sample documents) for informational purposes (“Content”), which is not intended to and shall not constitute legal or professional advice, either express or implied. You agree not to rely on SCC for (nor shall SCC render) legal or professional advice. You acknowledge and agrees that You are solely responsible for Your legal and employment related decisions and will consult with Your own legal counsel (at Your discretion) regarding all employment law related matters, including but not limited to Your legal obligations with respect to Your procurement and use of the Services and Screening Reports. 

7.3         EXCEPT AS EXPLICITLY SET FORTH IN THIS AGREEMENT, (A) THE PLATFORM, CONTENT AND ALL SERVICES ARE PROVIDED ON AN ‘AS IS,’ ‘AS AVAILABLE’ BASIS, (B) SCC DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND (C) SCC DOES NOT WARRANT THAT THE PLATFORM, CONTENT OR SERVICES WILL BE UNINTERRUPTED OR ERROR-FREE AND DISCLAIMS ANY WARRANTY OR REPRESENTATION REGARDING AVAILABILITY OF THE PLATFORM, SERVICES, SERVICE LEVELS OR PERFORMANCE. 

 

8.         Limitation of Liability 

8.1         SCC WILL NOT BE LIABLE FOR ANY INCIDENTAL, SPECIAL, PUNITIVE, EXEMPLARY, INDIRECT, OR CONSEQUENTIAL DAMAGES OF ANY KIND (INCLUDING LOSS OF PROFITS), REGARDLESS OF WHETHER OR NOT SCC WAS AWARE OR SHOULD HAVE BEEN AWARE OF THE POSSIBILITY OF SUCH DAMAGES. 

8.2.         SCC’S MAXIMUM LIABILITY ARISING OUT OF OR RELATING TO THIS AGREEMENT, REGARDLESS OF THE CAUSE OF ACTION (WHETHER IN CONTRACT, TORT, BREACH OF WARRANTY OR OTHERWISE), WILL NOT EXCEED THE TOTAL AMOUNT PAID AND PAYABLE BY CLIENT HEREUNDER DURING THE 6-MONTH PERIOD IMMEDIATELY PRECEDING THE DATE ON WHICH SUCH LOSS, DAMAGE, INJURY, CLAIM, COST OR EXPENSE OCCURRED. 

8.3.         The foregoing limitations shall not apply to the extent not permitted by applicable law. 

 

9.         Term and Termination 

9.1         Term. This Agreement shall begin on the Effective Date, and shall continue until terminated by either party in accordance with this Section 9 or as otherwise permitted by this Agreement (“Term”).

9.2         Termination by You. You may terminate this Agreement at any time with or without cause upon written notice to SCC. 

9.3         Termination by SCC. SCC, in its sole discretion, may terminate this Agreement and/or suspend Services immediately at any time with or without cause upon notice to You (an alert via the Platform and/or via email is sufficient). 

9.4         Effect of Termination. Upon termination or expiration of this Agreement for any reason, You will have no further right to use or access the Platform or Services. 

9.5         Surviving Provisions. All provisions that by their nature are intended to survive, including but not limited to payment obligations, disclaimers of warranties, confidentiality and limitations of liability, shall survive the termination of this Agreement. 

 

10.         Choice of Law; Disputes 

10.1         This Agreement is governed by and construed in accordance with the laws of the State of New York, without regard to choice of law provisions. Any disputes arising out of this Agreement that cannot be resolved by the parties will be brought in state or federal court located in New York County, New York. The parties shall file in federal court when possible. 

 

11.         Miscellaneous 

11.1         This Agreement, addenda, attachments, exhibits and/or schedules (including the End User Certification), constitute the entire agreement between the parties regarding the Platform and Services. All prior agreements, both oral and written, between the parties on the matters contained in this Agreement are expressly cancelled and superseded by this Agreement. In no event shall any terms or conditions included on any form of Yours, including without limitation, any purchase order, apply to the relationship between the parties hereunder. Any amendments of or waivers relating to this Agreement must be in writing signed by the party, or parties, to be charged therewith. Except for Client’s payment obligations hereunder, neither Party shall be responsible for any events or circumstances beyond its control including but not limited to war, riots, terrorism, embargoes, strikes and/or Acts of God) that prevent it from meeting its obligations under this Agreement. 

11.2         The relationship between the parties is that of independent contractors. Nothing contained in this Agreement shall be construed as creating any agency, partnership, joint venture or other form of joint enterprise, employment or fiduciary relationship between the parties, and neither party shall have any authority of any kind to bind the other in any respect. 

11.3         Your electronic acceptance of this Agreement will be as effective as delivery of a manually executed copy of the Agreement. 

11.4         Except as otherwise set forth in this Agreement, all notices related to this Agreement shall be in writing and delivered to the address set forth in this Agreement if to SCC (or to such other address as SCC may from time to time specify) or to the address or email provided by You during account registration if to Client (or to such other address or email as You may designate by updating Your account contact information via the Platform). Except for notices (i) of breach, or (ii) of indemnifiable claims, SCC may deliver notice to You via an alert on the Platform or via email to the then-current contact designated by You in Your account. 

11.5         SCC shall provide notice (an alert via the Platform is sufficient or via email to the then-current contact designated by You in Your account) with respect to any change to or discontinuation of any Services and/or the Platform. 

11.6         SCC may use Client’s brands, logos, service marks, trade name, and other source identifiers for the purpose of representing to third parties that SCC is providing Services to Client. 

11.7         You may not assign this Agreement, or any rights or obligations hereunder, without SCC’s prior written consent. SCC may assign, transfer or delegate any of its rights and obligations hereunder without consent. 

11.8         You acknowledge that SCC’s suppliers, vendors, and/or partners may require You to execute additional terms and conditions and/or documentation as a condition precedent to SCC providing certain services.

END USER CERTIFICATION

In connection with the SCCNow Service Agreement (the “Agreement”), SCC will furnish you or the entity on whose behalf you are accepting the Agreement (“You” or “End User”) with Screening Reports conditioned upon End User’s compliance with its obligations set forth below (and in the Agreement) (this “Certification”). Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Agreement. In utilizing SCC’s Services in regard to Screening Reports, You are considered a user of consumer reports and/or investigative consumer reports under the FCRA and applicable state laws.

 

BY CHECKING THE BOX INDICATING ACCEPTANCE OF THIS CERTIFICATION AND CLICKING THE BUTTON TO CONTINUE, OR BY OTHER MEANS PROVIDED BY SCC FOR ACCEPTANCE, YOU (A) ACCEPT THIS END USER CERTIFICATION AND AGREE THAT YOU ARE LEGALLY BOUND BY ITS TERMS EFFECTIVE OF THE DATE OF ACCEPTANCE (“EFFECTIVE DATE”); AND (B) REPRESENT AND WARRANT THAT: (I) YOU ARE OF LEGAL AGE TO ENTER INTO A BINDING AGREEMENT; AND (II) IF YOU ARE ENTERING INTO THIS CERTIFICATION FOR A CORPORATION, GOVERNMENTAL ORGANIZATION, OR OTHER LEGAL ENTITY, YOU HAVE THE RIGHT, POWER, AND AUTHORITY TO ENTER INTO THIS CERTIFICATION ON BEHALF OF SUCH LEGAL ENTITY AND BIND SUCH LEGAL ENTITY TO THIS CERTIFICATION AND ANY REFERENCES TO ‘YOU’ OR ‘YOUR’ IN THIS END USER CERTIFICATION REFER TO SUCH ENTITY AND ALL OF ITS EMPLOYEES, CONTRACTORS, AGENTS AND REPRESENTATIVES. IF YOU DO NOT AGREE TO THE TERMS AND CONDITIONS OF THIS END USER CERTIFICATION, YOU MUST NOT ACCEPT OR SIGN THIS CERTIFICATION AND MAY NOT USE THE PLATFORM OR SERVICES.

 

1. FCRA Certification. To the extent that End User is located in the United States and/or End User’s procurement and/or use of Screening Reports is subject to the FCRA, End User certifies that it will do the following: 

• 1.1 Permissible Purpose. End User hereby certifies that all of its orders for Screening Reports from SCC shall be made, and the resulting reports shall be used for employment purposes, as defined in the FCRA, including evaluating a consumer for employment, promotion, reassignment or retention as an employee, where the consumer has given prior permission.
• 1.2 Compliance with Laws. End User shall comply with all federal (including, without limitation, the FCRA), state, local, and international laws and regulations applicable to End User in connection with its procurement and use of Screening Reports furnished by SCC.
• 1.3 Receipt of Required Notices. End User acknowledges that it has received and reviewed a copy of the notices titled (i) Notice to Users of Consumer Reports: Obligations of Users Under the Fair Credit Reporting Act (“Notice to Users”), which explains End User’s obligations under the FCRA as a user of consumer information and a copy of which is attached hereto as Exhibit A-1, and (ii) A Summary of Your Rights Under the Fair Credit Reporting Act, a copy of which is attached hereto as Exhibit A-2. End User certifies that it will comply with all applicable provisions of Notice to Users.
• 1.4 Disclosure and Authorization. End User agrees and certifies that prior to procurement or causing the procurement of a consumer report for employment purposes: (a) A clear and conspicuous disclosure has been made in writing to the consumer, in a document that consists of only the disclosure, explaining that a consumer report may be obtained for employment purposes and such disclosure satisfied all of the requirements of the FCRA as well as any applicable state or local laws; and (b) The consumer has authorized in writing the procurement of the report by End User.
• 1.5 Investigative Investigative Consumer Reports. In addition to the disclosure and authorization requirements in Section 1.4 above, End User agrees and certifies that prior to procurement or causing the procurement of an investigative consumer report for employment purposes: (a) It has been clearly and accurately disclosed to the consumer that an investigative consumer report including information as to the consumer’s character, general reputation, personal characteristics and/or mode of living may be made; and (b) Such disclosure (i) is made in a writing mailed, or otherwise delivered, to the consumer, not later than three days after the date on which the report was first requested, (ii) contains a statement informing the consumer of his/her right to request a complete and accurate disclosure of the nature and scope of the requested investigation and his/her right to request a copy of the rights of the consumer under the FCRA titled A Summary of Your Rights Under the Fair Credit Reporting Act, and (iii) satisfied all of the requirements of the FCRA as well as any applicable state or local laws. If the consumer makes a request within a reasonable time after his/her receipt of the required disclosure, End User certifies that it shall make a complete and accurate disclosure of the investigation requested. Such disclosure shall be made in a writing mailed, or otherwise delivered, to the consumer not later than five (5) days after the date on which the request for such disclosure was received from the consumer or such report was first requested, whichever is the later.
• 1.6 Adverse Action. Pursuant to the FCRA and, where applicable, state and local laws and regulations, before taking any adverse action based in whole or in part on a Screening Report, End User must adhere to certain obligations. At a minimum, in using a Screening Report for employment purposes, before taking any adverse action based in whole or in part on the Screening Report, End User shall provide to the consumer to whom the Screening Report relates: (a) A pre-adverse action notice/letter stating that End User is considering taking adverse action; (b) A copy of the full and complete Screening Report; (c) A copy of the notice titled A Summary of Your Rights Under the Fair Credit Reporting Act and any applicable state summary of rights; (d) A reasonable opportunity of time to correct any erroneous information contained in the Screening Report; and (e) Contact information for SCC. If End User thereafter takes adverse action, End User shall also provide a final adverse action notice to the consumer to whom the Screening Report relates. Such notice shall comply with all applicable laws, and shall include the name, address, and phone number of SCC; a statement that SCC did not make the decision to take the unfavorable action and cannot give specific reasons for it; and a notice of the person’s right to dispute the accuracy or completeness of any information SCC furnished, and to get an additional free report from SCC if the person asks for it within 60 days.
• 1.7 Equal Employment Opportunity. End User further certifies that information from any Screening Report will not be used in violation of any applicable federal or state equal opportunity law or regulation.
• 1.8 Continuing Certification. End User certifies that each and every time it requests a Screening Report regardless of ordering mechanism, it is at the time that the order is place reaffirming its certifications herein, including without limitation, Section 1.4 above.
• 1.9 Required Certification Updates. If SCC determines, in SCC’s sole discretion, that regulatory or industry changes require updates to the Employer Certification in this Section 1, SCC retains the right to request and require additional documentation and certifications from End User. End User understands that any failure to cooperate with reasonable requests for such documentation and certifications may constitute grounds for immediate suspension of the Services and termination of the Agreement.

 

2. State Certifications.

• 2.1 California Certification. End User hereby certifies that, under the Investigative Consumer Reporting Agencies Act (“ICRAA”), California Civil Code Sections 1786 et seq., and the Consumer Credit Reporting Agencies Act (“CCRAA”), California Civil Code Sections 1785.1 et seq., to the extent End User is located in the State of California, and/or End User’s request for and/or use of Screening Reports pertains to a California resident or worker, End User will do the following:
1. 2.1.1 Request and use Screening Reports solely for permissible purpose(s) identified under California Civil Code Sections 1785.11 and 1786.12.
2. 2.1.2 When, at any time, a Screening Report is sought for employment purposes other than suspicion of wrongdoing or misconduct by the consumer who is the subject of the investigation, provide a clear and conspicuous disclosure in writing to the consumer, which solely discloses: (i) that an investigative Screening Report may be obtained; (ii) the permissible purpose of the investigative Screening Report; (iii) that information on the consumer’s character, general reputation, personal characteristics and mode of living may be disclosed; (iv) the name, address, and telephone number of SCC; and (v) the nature and scope of the investigation requested, including a summary of the provisions of California Civil Code Section 1786.22.
3. 2.1.3 When, at any time, a Screening Report is sought for employment purposes other than suspicion of wrongdoing or misconduct by the consumer who is the subject of the investigation, only request a Screening Report if the applicable consumer has authorized in writing the procurement of the Screening Report.
4. 2.1.4 Provide the consumer a means by which he/she may indicate on a written form, by means of a box to check, that the consumer wishes to receive a copy of any Screening Report that is prepared.
5. 2.1.5 If consumer wishes to receive a copy of the Screening Report, send (or contract with another entity to send) a copy of the Screening Report to the consumer within three business days of the date that the Screening Report is provided to End User. The copy of the Screening Report shall contain the name, address, and telephone number of the person who issued the report and how to contact him/her.
6. 2.1.6 Under all applicable circumstances, comply with California Civil Code Sections 1785.20 and 1786.40 if the taking of adverse action is a consideration, which shall include, but may not be limited to, advising the consumer against whom an adverse action has been taken that the adverse action was based in whole or in part upon information contained in the Screening Report, informing the consumer in writing of SCC’s name, address, and telephone number, and provide the consumer with a written notice of his/her rights under the ICRAA and the CCRAA.
7. 2.1.7 Comply with all other requirements under applicable California law, including, but not limited to any statutes, regulations and rules governing the procurement, use and/or disclosure of any Screening Reports, including, but not limited to, the ICRAA and the CCRAA.
• 2.2 Vermont Certification. In addition to the Notice to Users, if End User is a user of Vermont Screening Reports, End User certifies that it will comply with the applicable provisions of Vermont law, including, without limitation, Section 2480e of the Vermont Fair Credit Reporting Statute. End User further certifies that it has received a copy of Section 2480e of the Vermont Fair Credit Reporting Statute, attached hereto as Exhibit A-3.

3. General Use Requirements. End User further certifies that:

• 3.1. It will use each Screening Report only for a one-time use and will request Screening Reports only for End User’s exclusive use, except to the extent that disclosure to others is required by law.
• 3.2. It shall provide access to Screening Reports provided by SCC only to employees, agents and representatives of End User who fully review and understand End User’s obligations under the FCRA and the Agreement and who agree to comply with those obligations.
• 3.3. It shall ensure that its users do not request and/or obtain Screening Reports on themselves, coworkers, employees, family members or friends unless it is in connection with a legitimate business transaction and procured in accordance with the terms of this Certification.
• 3.4. It shall hold the Screening Reports in strict confidence. End User shall maintain all Screening Reports in a secure and confidential manner and shall follow all applicable laws relating to storage and dissemination of information. Furthermore, End User shall dispose of any Screening Reports and any other documentation containing personally identifiable information received from SCC in accordance with applicable law, including without limitation, the FACTA Disposal Rules.
• 3.5 End User shall implement and maintain a comprehensive information security program that contains administrative, technical, and physical safeguards that are appropriate to the End User’s size and complexity, the nature and scope of its activities, and the sensitivity of the information provided to End User by SCC; and that such safeguards shall be reasonably designed to (i) ensure the security and confidentiality of the information provided by SCC, (ii) protect against any anticipated threats or hazards to the security or integrity of such information, and (iii) protect against unauthorized access to or use of such information that could result in substantial harm or inconvenience to any consumer. Such safeguards shall include, at a minimum, the requirements contained in Exhibit B to this Certification (“Access Security Requirements”).
• 3.6 It shall retain copies of all written authorizations and disclosures and any reports it receives from SCC for a period of five (5) years and will make such reports available to SCC upon request.
• 3.7 It shall not resell, sublicense, deliver, display, use for marketing purposes or otherwise distribute any Screening Reports provided by SCC to any third party. ANY PERSON WHO WILLFULLY AND KNOWINGLY OBTAINS, RESELLS, TRANSFERS, OR USES INFORMATION IN VIOLATION OF LAW MAY BE SUBJECT TO CRIMINAL CHARGES AND/OR LIABLE TO ANY INJURED PARTY FOR TREBLE DAMAGES, REASONABLE ATTORNEY’S FEES AND COSTS. OTHER CIVIL AND CRIMINAL LAWS MAY ALSO APPLY
• 3.8 It understands that THE FCRA PROVIDES THAT ANY PERSON WHO KNOWINGLY AND WILLFULLY OBTAINS INFORMATION ON A CONSUMER FROM A CONSUMER REPORTING AGENCY UNDER FALSE PRETENSES SHALL BE FINED UNDER TITLE 18 OF THE UNITED STATES CODE OR IMPRISONED NOT MORE THAN TWO YEARS, OR BOTH.

4. Product-Specific Requirements.

• 4.1. SSN Trace. If Screening Reports include Social Security Number Trace (“SSN Trace”), End User shall not use Social Security Number trace results in any way, directly or indirectly, for the purpose of making employment decisions. End User also confirms that it will not use Social Security Number trace information in any way that would violate the privacy obligations or any other terms and provisions of the Gramm–Leach-Bliley Act (15 U.S.C 6801 et seq.) or the Federal Drivers Privacy Protection Act (18.U.S.C. Section 2721 et seq.) or any other similar U.S. state or local statute, rule or regulation.
• 4.2. U.S. MVRs. If Screening Reports include United States motor vehicle reports (“MVRs”), End User:
1. 4.2.1 Shall comply with the Drivers Privacy Protection Act (“DPPA”) and any applicable state laws.
2. 4.2.2 Shall be responsible for understanding and for staying current with all specific state forms, certificates of use or other documents or agreements including any changes, supplements or amendments thereto imposed by the states (collectively referred to as “Specific State Forms”) from which it will order MVRs. End User certifies that it will file all applicable Specific State Forms required by individual states.
3. 4.2.3 Certifies that no MVRs shall be ordered without first obtaining the written consent of the data subject to obtain “driving records,” evidence of which shall be transmitted to SCC in the form of the data subject’s signed release authorization form. End User also certifies that it will use this information only in the normal course of business (i) to obtain lawful information relating to the holder of a commercial driver’s license, or (ii) to verify information provided by a candidate or employee. End User shall protect the privacy of the information of the data subject in an MVR and shall not transmit any data contained in the resulting MVR via any unsecured means.
• 4.3. Massachusetts iCORI. To the extent End User is requesting SCC to provide Massachusetts iCORI information: (i) End User notified the consumer in writing of, and received permission via a separate authorization for SCC to obtain and provide CORI information to End User; (ii) End User is in compliance with all federal and state credit reporting statutes; (iii) End User will not misuse any CORI information provided in violation of federal or state equal employment opportunity laws regulations; and (iv) End User will provide SCC with a statement of the annual salary of the position for which the subject is screened.
• 4.4. Credit Reports. If Screening Reports include credit reports, End User:
1. 4.4.1. Certifies that it will promptly notify SCC of any change in its location, structure, ownership or control, including but not limited to the addition of any branch(es) that will be requesting and/or accessing credit reports.
2. 4.4.2. Acknowledges and understands that credit bureaus may prohibit the following persons, entities and/or businesses from obtaining credit reports: adult entertainment service of any kind; asset location service; attorney or law firm engaged in the practice of law (unless engaged in collection or using the report in connection with a consumer bankruptcy pursuant to the written authorization of the consumer); bail bondsman (unless licensed by the state in which they are operating); child location service – company that locates missing children; credit counseling (except not-for-profit credit counselors); credit repair clinic; dating service; financial counseling (except a registered securities broker dealer or a certified financial planner); with respect to U.S. credit reports, foreign company or agency of a foreign government; genealogical or heir research firm; law enforcement agency; massage service; news agency or journalist; pawn shop; private detective, detective agency or investigative company; repossession company; subscriptions (magazines, book clubs, record clubs, etc.); tattoo service; time shares – company seeking information in connection with time shares (exception: financers of time shares); weapons dealer, seller or distributor.

 

5. Right to Audit. End User agrees to cooperate with any reasonable audit request by SCC and/or a third-party data supplier of SCC to assure compliance with the terms of this Certification; provided that (i) SCC shall give End User reasonable prior notice of any such audit; (ii) any such audit shall be subject to End User’s security policies and third-party confidentiality obligations, and (iii) SCC shall conduct or cause to be conducted such audit in a manner designed to minimize disruption of End User’s normal business operations. End User understands that any failure to cooperate with reasonable requests regarding an audit constitutes grounds for immediate suspension of the Services and termination of the Agreement. 

 

6. Hold Harmless. End User agrees to indemnify and hold harmless SCC, its suppliers, and their successors and assigns, and their current and former officers, directors, employees, and agents, both individually and in their official capacities from any liability and attorneys’ fees incurred due to End User’s violation of any of the terms of this Certification or failure to comply with applicable law.

 

 

EXHIBIT A-1

All users of consumer reports must comply with all applicable regulations. Information about applicable regulations currently in effect can be found at the Consumer Financial Protection Bureau’s website, http://www.consumerfinance.gov/learnmore.

 

NOTICE TO USERS OF CONSUMER REPORTS: OBLIGATIONS OF USERS UNDER THE FCRA

 

The Fair Credit Reporting Act (FCRA), 15 U.S.C. §1681-1681y, requires that this notice be provided to inform users of consumer reports of their legal obligations. State law may impose additional requirements. The text of the FCRA is set forth in full at the Consumer Financial Protection Bureau’s (CFPB) website atwww.consumerfinance.gov/learnmore.At the end of this document is a list of United States Code citations for the FCRA. Other information about user duties is also available at CFPB’s website.Users must consult the relevant provisions of the FCRA for details about their obligations under the FCRA.

 

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. If you are a furnisher of information to a consumer reporting agency (CRA), you have additional obligations and will receive a separate notice from the CRA describing your duties as a furnisher.

 

I. OBLIGATIONS OF ALL USERS OF CONSUMER REPORTS

A. Users Must Have a Permissible Purpose 

Congress has limited the use of consumer reports to protect consumers’ privacy. All users must have a permissible purpose under the FCRA to obtain a consumer report. Section 604 contains a list of the permissible purposes under the law. These are:

• As ordered by a court or a federal grand jury subpoena. Section 604(a)(1)
• As instructed by the consumer in writing. Section 604(a)(2)
• For the extension of credit as a result of an application from a consumer, or the review or collection of a consumer’s account. Section 604(a)(3)(A)
• For employment purposes, including hiring and promotion decisions, where the consumer has given written permission. Sections 604(a)(3)(B) and 604(b)
• For the underwriting of insurance as a result of an application from a consumer. Section 604(a)(3)(C)
• When there is a legitimate business need, in connection with a business transaction that is initiated by the consumer. Section 604(a)(3)(F)(i)
• To review a consumer’s account to determine whether the consumer continues to meet the terms of the account. Section 604(a)(3)(F)(ii)
• To determine a consumer’s eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant’s financial responsibility or status. Section 604(a)(3)(D)
• For use by a potential investor or servicer, or current insurer, in a valuation or assessment of the credit or prepayment risks associated with an existing credit obligation. Section 604(a)(3)(E)
• For use by state and local officials in connection with the determination of child support payments, or modifications and enforcement thereof. Sections 604(a)(4) and 604(a)(5)

In addition, creditors and insurers may obtain certain consumer report information for the purpose of making “prescreened” unsolicited offers of credit or insurance. Section 604(c). The particular obligations of users of “prescreened” information are described in Section VII below.

 

B. Users Must Provide Certifications 

Section 604(f) prohibits any person from obtaining a consumer report from a consumer reporting agency (CRA) unless the person has certified to the CRA the permissible purpose(s) for which the report is being obtained and certifies that the report will not be used for any other purpose. 

 

C. Users Must Notify Consumers When Adverse Actions Are Taken

The term “adverse action” is defined very broadly by Section 603. “Adverse actions” include all business, credit, and employment actions affecting consumers that can be considered to have a negative impact as defined by Section 603(k) of the FCRA – such as denying or canceling credit or insurance, or denying employment or promotion. No adverse action occurs in a credit transaction where the creditor makes a counteroffer that is accepted by the consumer. 

 

1. Adverse Actions Based on Information Obtained From a CRA

If a user takes any type of adverse action as defined by the FCRA that is based at least in part on information contained in a consumer report, Section 615(a) requires the user to notify the consumer. The notification may be done in writing, orally, or by electronic means. It must include the following:

• The name, address, and telephone number of the CRA (including a toll-free telephone number, if it is a nationwide CRA) that provided the report.
• A statement that the CRA did not make the adverse decision and is not able to explain why the decision was made.
• A statement setting forth the consumer’s right to obtain a free disclosure of the consumer’s file from the CRA if the consumer makes a request within 60 days.
• A statement setting forth the consumer’s right to dispute directly with the CRA the accuracy or completeness of any information provided by the CRA

 

2. Adverse Actions Based on Information Obtained From Third Parties Who Are Not Consumer Reporting Agencies

If a person denies (or increases the charge for) credit for personal, family, or household purposes based either wholly or partly upon information from a person other than a CRA, and the information is the type of consumer information covered by the FCRA, Section 615(b)(1) requires that the user clearly and accurately disclose to the consumer his or her right to be told the nature of the information that was relied upon if the consumer makes a written request within 60 days of notification. The user must provide the disclosure within a reasonable period of time following the consumer’s written request.

3. Adverse Actions Based on Information Obtained From AffiliatesIf a person takes an adverse action involving insurance, employment, or a credit transaction initiated by the consumer, based on information of the type covered by the FCRA, and this information was obtained from an entity affiliated with the user of the information by common ownership or control, Section 615(b)(2) requires the user to notify the consumer of the adverse action. The notice must inform the consumer that he or she may obtain a disclosure of the nature of the information relied upon by making a written request within 60 days of receiving the adverse action notice. If the consumer makes such a request, the user must disclose the nature of the information not later than 30 days after receiving the request. If consumer report information is shared among affiliates and then used for an adverse action, the user must make an adverse action disclosure as set forth in I.C.1 above.

 

D. Users Have Obligations When Fraud and Active Duty Military Alerts are in Files 

When a consumer has placed a fraud alert, including one relating to identify theft, or an active duty military alert with a nationwide consumer reporting agency as defined in Section 603(p) and resellers, Section 605A(h) imposes limitations on users of reports obtained from the consumer reporting agency in certain circumstances, including the establishment of a new credit plan and the issuance of additional credit cards. For initial fraud alerts and active duty alerts, the user must have reasonable policies and procedures in place to form a belief that the user knows the identity of the applicant or contact the consumer at a telephone number specified by the consumer; in the case of extended fraud alerts, the user must contact the consumer in accordance with the contact information provided in the consumer’s alert.

 

E. Users Have Obligations When Notified of an Address Discrepancy Section 605(h) requires nationwide CRAs, as defined in Section 603(p), to notify users that request reports when the address for a consumer provided by the user in requesting the report is substantially different from the addresses in the consumer’s file. When this occurs, users must comply with regulations specifying the procedures to be followed. Federal regulations are available atwww.consumerfinance.gov/learnmore.

 

F. Users Have Obligations When Disposing of RecordsSection 628 requires that all users of consumer report information have in place procedures to properly dispose of records containing this information. Federal regulations have been issued that cover disposal.

 

II. CREDITORS MUST MAKE ADDITIONAL 

 

DISCLOSURES If a person uses a consumer report in connection with an application for, or a grant, extension, or provision of, credit to a consumer on material terms that are materially less favorable than the most favorable terms available to a substantial proportion of consumers from or through that person, based in whole or in part on a consumer report, the person must provide a risk-based pricing notice to the consumer in accordance with regulations prescribed by the CFPB. 

 

Section 609(g) requires a disclosure by all persons that make or arrange loans secured by residential real property (one to four units) and that use credit scores. These persons must provide credit scores and other information about credit scores to applicants, including the disclosure set forth in Section 609(g)(1)(D) (“Notice to the Home Loan Applicant”).

 

III. OBLIGATIONS OF USERS WHEN CONSUMER REPORTS ARE OBTAINED FOR EMPLOYMENT PURPOSES 

 

A. Employment Other Than in the Trucking Industry

If the information from a CRA is used for employment purposes, the user has specific duties, which are set forth in Section 604(b) of the FCRA. The user must:

• Make a clear and conspicuous written disclosure to the consumer before the report is obtained, in a document that consists solely of the disclosure, that a consumer report may be obtained.
• Obtain from the consumer prior written authorization. Authorization to access reports during the term of employment may be obtained at the time of employment.
• Certify to the CRA that the above steps have been followed, that the information being obtained will not be used in violation of any federal or state equal opportunity law or regulation, and that, if any adverse action is to be taken based on the consumer report, a copy of the report and a summary of the consumer’s rights will be provided to the consumer.
• Before taking an adverse action, the user must provide a copy of the report to the consumer as well as the summary of consumer’s rights (The user should receive this summary from the CRA.) A Section 615(a) adverse action notice should be sent after the adverse action is taken.

An adverse action notice also is required in employment situations if credit information (other than transactions and experience data) obtained from an affiliate is used to deny employment. Section 615(b)(2). 

 

The procedures for investigative consumer reports and employee misconduct investigations are set forth below. 

 

B. Employment in the Trucking Industry 

Special rules apply for truck drivers where the only interaction between the consumer and the potential employer is by mail, telephone, or computer. In this case, the consumer may provide consent orally or electronically, and an adverse action may be made orally, in writing, or electronically. The consumer may obtain a copy of any report relied upon by the trucking company by contacting the company.

 

IV. IV. OBLIGATIONS WHEN INVESTIGATIVE CONSUMER REPORTS ARE USED

Investigative consumer reports are a special type of consumer report in which information about a consumer’s character, general reputation, personal characteristics, and mode of living is obtained through personal interviews by an entity or person that is a consumer reporting agency. Consumers who are the subjects of such reports are given special rights under the FCRA. If a user intends to obtain an investigative consumer report, Section 606 requires the following:

• The user must disclose to the consumer that an investigative consumer report may be obtained. This must be done in a written disclosure that is mailed, or otherwise delivered, to the consumer at some time before or not later than three days after the date on which the report was first requested. The disclosure must include a statement informing the consumer of his or her right to request additional disclosures of the nature and scope of the investigation as described below, and the summary of consumer rights required by Section 609 of the FCRA. (The summary of consumer rights will be provided by the CRA that conducts the investigation.)
• The user must certify to the CRA that the disclosures set forth above have been made and that the user will make the disclosure described below.
• Upon the written request of a consumer made within a reasonable period of time after the disclosures required above, the user must make a complete disclosure of the nature and scope of the investigation. This must be made in a written statement that is mailed or otherwise delivered, to the consumer no later than five days after the date on which the request was received from the consumer or the report was first requested, whichever is later in time.

 

 

V. SPECIAL PROCEDURES FOR EMPLOYEE INVESTIGATIONS 

Section 603(x) provides special procedures for investigations of suspected misconduct by an employee or for compliance with Federal, state or local laws and regulations or the rules of a self-regulatory organization, and compliance with written policies of the employer. These investigations are not treated as consumer reports so long as the employer or its agent complies with the procedures set forth in Section 603(x), and a summary describing the nature and scope of the inquiry is made to the employee if an adverse action is taken based on the investigation. 

 

VI. OBLIGATIONS OF USERS OF MEDICAL INFORMATION 

Section 604(g) limits the use of medical information obtained from consumer reporting agencies (other than payment information that appears in a coded form that does not identify the medical provider). If the information is to be used for an insurance transaction, the consumer must give consent to the user of the report or the information must be coded. If the report is to be used for employment purposes – or in connection with a credit transaction (except as provided in federal regulations) – the consumer must provide specific written consent and the medical information must be relevant. Any user who receives medical information shall not disclose the information to any other person (except where necessary to carry out the purpose for which the information was disclosed, or a permitted by statute, regulation, or order).

 

VII. OBLIGATIONS OF USERS OF “PRESCREENED” LISTS

The FCRA permits creditors and insurers to obtain limited consumer report information for use in connection with unsolicited offers of credit or insurance under certain circumstances. Sections 603(1), 604(c), 604(e), and 615(d). This practice is known as “prescreening” and typically involves obtaining from a CRA a list of consumers who meet certain preestablished criteria. If any person intends to use prescreened lists, that person must (1) before the offer is made, establish the criteria that will be relied upon to make the offer and grant credit or insurance, and (2) maintain such criteria on file for a three-year period beginning on the date on which the offer is made to each consumer. In addition, any user must provide with each written solicitation a clear and conspicuous statement that: 

 

• Information contained in a consumer’s CRA file was used in connection with the transaction.
• The consumer received the offer because he or she satisfied the criteria for credit worthiness or insurability used to screen for the offer.
• Credit or insurance may not be extended if, after the consumer responds, it is determined that the consumer does not meet the criteria used for screening or any applicable criteria bearing on credit worthiness or insurability, or the consumer does not furnish required collateral.
• The consumer may prohibit the use of information in his or her file in connection with future prescreened offers of credit or insurance by contacting the notification system established by the CRA that provided the report. The statement must include the address and toll-free telephone number of the appropriate notification system.

In addition, the CFPB has established the format, type size, and manner of the disclosure required by Section 615(d), with which users must comply. The relevant regulation is 12 CFR 1022.54.

 

VIII. OBLIGATIONS OF RESELLERS 

 

A. Disclosure and Certification Requirements Section 607(e) requires any person who obtains a consumer report for resale to take the following steps:

• Disclose the identity of the end-user to the source CRA.
• Identify to the source CRA each permissible purpose for which the report will be furnished to the end-user.
• Establish and follow reasonable procedures to ensure that reports are resold only for permissible purposes, including procedures to obtain: 
1.   the identify of all end-users;
2. certifications from all users of each purpose for which reports will be used; and
3. certifications that reports will not be used for any purpose other than the purpose(s) specified to the reseller. Resellers must make reasonable efforts to verify this information before selling the report.

 

B. Reinvestigations by Resellers 

 

Under Section 611(f), if a consumer disputes the accuracy or completeness of information in a report prepared by a reseller, the reseller must determine whether this is a result of an action or omission on its part and, if so, correct or delete the information. If not, the reseller must send the dispute to the source CRA for reinvestigation. When any CRA notifies the reseller of the results of an investigation, the reseller must immediately convey the information to the consumer.

 

C. Fraud Alerts and Resellers 

 

Section 605A(f) requires resellers who receive fraud alerts or active duty alerts from another consumer reporting agency to include these in their reports.

 

IX. LIABILITY FOR VIOLATIONS OF THE FCRA 

Failure to comply with the FCRA can result in state government or federal government enforcement actions, as well as private lawsuits.Sections 616, 617, and 621. In addition, any person who knowingly and willfully obtains a consumer report under false pretenses may face criminal prosecution. Section 619. 

 

_____________________________________________________________________________ 

The CFPB’s website,http://www.consumerfinance.gov/learnmore., has more information about the FCRA, including publications for businesses and the full text of the FCRA. 

Citations for FCRA sections in the U.S. Code, 15 U.S.C. § 1618 et seq.:

Section 602                               15 U.S.C. 1681 Section 603                               15 U.S.C. 1681a Section 604                               15 U.S.C. 1681b Section 605                               15 U.S.C. 1681c Section 605A                            15 U.S.C. 1681cA Section 605B                            15 U.S.C. 1681cB Section 606                               15 U.S.C. 1681d Section 607                               15 U.S.C. 1681e Section 608                               15 U.S.C. 1681f Section 609                               15 U.S.C. 1681g Section 610                               15 U.S.C. 1681h Section 611                               15 U.S.C. 1681i Section 612                               15 U.S.C. 1681j Section 613                               15 U.S.C. 1681k Section 614                               15 U.S.C. 1681l

Section 615                               15 U.S.C. 1681m Section 616                               15 U.S.C. 1681n Section 617                               15 U.S.C. 1681o Section 618                               15 U.S.C. 1681p Section 619                               15 U.S.C. 1681q Section 620                               15 U.S.C. 1681r Section 621                               15 U.S.C. 1681s Section 622                               15 U.S.C. 1681s-1 Section 623                               15 U.S.C. 1681s-2 Section 624                               15 U.S.C. 1681t Section 625                               15 U.S.C. 1681u Section 626                               15 U.S.C. 1681v Section 627                               15 U.S.C. 1681w Section 628                               15 U.S.C. 1681x Section 629                               15 U.S.C. 1681y

EXHIBIT A-2

Para información en español, visite http://www.consumerfinance.gov/learnmore o escribe a la Consumer Financial Protection Bureau, 1700 G Street N.W., Washington, DC 20552.

 

A Summary of Your Rights Under the Fair Credit Reporting Act

 

      The federal Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. There are many types of consumer reporting agencies, including credit bureaus and specialty agencies (such as agencies that sell information about check writing histories, medical records, and rental history records). Here is a summary of your major rights under FCRA. 

For more information, including information about additional rights, go to http://www.consumerfinance.gov/learnmore or write to: Consumer Financial Protection Bureau, 1700 G Street N.W., Washington, DC 20552.

 

• You must be told if information in your file has been used against you. Anyone who uses a credit report or another type of consumer report to deny your application for credit, insurance, or employment – or to take another adverse action against you – must tell you, and must give you the name, address, and phone number of the agency that provided the information.
• You have the right to know what is in your file.You may request and obtain all the information about you in the files of a consumer reporting agency (your “file disclosure”). You will be required to provide proper identification, which may include your Social Security number. In many cases, the disclosure will be free. You are entitled to a free file disclosure if:
• a person has taken adverse action against you because of information in your credit report;
• you are the victim of identity theft and place a fraud alert in your file;
• your file contains inaccurate information as a result of fraud;
• you are on public assistance;
• you are unemployed but expect to apply for employment within 60 days.
• In addition, all consumers are entitled to one free disclosure every 12 months upon request from each nationwide credit bureau and from nationwide specialty consumer reporting agencies. See http://www.consumerfinance.gov/learnmore for additional information.
• You have the right to ask for a credit score.Credit scores are numerical summaries of your credit-worthiness based on information from credit bureaus. You may request a credit score from consumer reporting agencies that create scores or distribute scores used in residential real property loans, but you will have to pay for it. In some mortgage transactions, you will receive credit score information for free from the mortgage lender.
• You have the right to dispute incomplete or inaccurate information.If you identify information in your file that is incomplete or inaccurate, and report it to the consumer reporting agency, the agency must investigate unless your dispute is frivolous. See http://www.consumerfinance.gov/learnmore for an explanation of dispute procedures.
• Consumer reporting agencies must correct or delete inaccurate, incomplete, or unverifiable information.Inaccurate, incomplete, or unverifiable information must be removed or corrected, usually within 30 days. However, a consumer reporting agency may continue to report information it has verified as accurate.
• Consumer Consumer Consumer reporting agencies may not report outdated negative information.In most cases, a consumer reporting agency may not report negative information that is more than seven years old, or bankruptcies that are more than 10 years old.
• Access to your file is limited. A consumer A consumer reporting agency may provide information about you only to people with a valid need – usually to consider an application with a creditor, insurer, employer, landlord, or other business. The FCRA specifies those with a valid need for access.
• You must give your consent for reports to be provided to employers.A consumer reporting agency may not give out information about you to your employer, or a potential employer, without your written consent given to the employer. Written consent generally is not required in the trucking industry. For more information, go towww.consumerfinance.gov/learnmore.
• You may limit “prescreened” offers of credit and insurance you get based on information in your credit report.Unsolicited “prescreened” offers for credit and insurance must include a toll-free phone number you can call if you choose your name and address form the lists these offers are based on. You may opt out with the nationwide credit bureaus at 1-888-5-OPTOUT (1-888-567-8688).
• The following FCRA right applies with respect to nationwide consumer reporting agencies:

  Consumers Have the Right To Obtain a Security Freeze

  You have a right to place a “security freeze” on your credit report, which will prohibit a consumer reporting agency from releasing information in your credit report without your express authorization.The security freeze is designed to prevent credit, loans, and services from being approved in your name without your consent. However, you should be aware that using a security freeze to take control over who gets access to the personal and financial information in your credit report may delay, interfere with, or prohibit the timely approval of any subsequent request or application you make regarding a new loan, credit, mortgage, or any other account involving the extension of credit.

  As an alternative to a security freeze, you have the right to place an initial or extended fraud alert on your credit file at no cost. An initial fraud alert is a 1-year alert that is placed on a consumer’s credit file. Upon seeing a fraud alert display on a consumer’s credit file, a business is required to take steps to verify the consumer’s identity before extending new credit. If you are a victim of identity theft, you are entitled to an extended fraud alert, which is a fraud alert lasting 7 years.

  A security freeze does not apply to a person or entity, or its affiliates, or collection agencies acting on behalf of the person or entity, with which you have an existing account that requests information in your credit report for the purposes of reviewing or collecting the account. Reviewing the account includes activities related to account maintenance, monitoring, credit line increases, and account upgrades and enhancements.

• You may seek damages from violators.If a consumer reporting agency, or, in some cases, a user of consumer reports or a furnisher of information to a consumer reporting agency violates the FCRA, you may be able to sue in state or federal court.
• Identity theft victims and active duty military personnel have additional rights. For more information, visitwww.consumerfinance.gov/learnmore.

 

States may enforce the FCRA, and many states have their own consumer reporting laws. In some cases, you may have more rights under state law. For more information, contact your state or local consumer protection agency or your state Attorney General. For information about your federal rights, contact: TYPE OF BUSINESS: CONTACT:

 

TYPE OF BUSINESS:	CONTACT:
1.a. Banks, savings associations, and credit unions with total assets of over $10 billion and their affiliates     b. Such affiliates that are not banks, savings associations, or credit unions also should list, in addition to the CFPB:	a. Consumer Financial Protection Bureau 1700 G Street, N.W. Washington, DC 20552 b. Federal Trade Commission Consumer Response Center 600 Pennsylvania Avenue, N.W. Washington, DC 20580 (877) 382-4357
2. To the extent not included in item 1 above: a. National banks, federal savings associations, and federal branches and federal agencies of foreign banks     b. State member banks, branches and agencies of foreign banks (other than federal branches, federal agencies, and Insured State Branches of Foreign Banks), commercial lending companies owned companies owned or controlled by foreign banks, and organizations operating under section 25 or 25A of the Federal Reserve Act.   c. Nonmember Insured Banks, Insured State Branches of Foreign Banks, and insured state savings associations   d. Federal Credit Unions	a. Office of the Comptroller of the Currency Customer Assistance Group 1301 McKinney Street, Suite 3450 Houston, TX 77010-9050 b. Federal Reserve Consumer Help Center P.O. Box 1200 Minneapolis, MN 55480 c. FDIC Consumer Response Center 1100 Walnut Street, Box #11 Kansas City, MO 64106 d. National Credit Union Administration Office of Consumer Financial Protection (OCFP) Division of Consumer Compliance Policy and Outreach 1775 Duke Street Alexandria, VA 22314
3. Air carriers	Asst. General Counsel for Aviation Enforcement & Proceedings Aviation Consumer Protection Division Department of Transportation 1200 New Jersey Avenue, S.E. Washington, DC 20590
4. Creditors Subject to the Surface Transportation Board	Office of Proceedings, Surface Transportation Board Department of Transportation 395 E Street, S.W. Washington, DC 20423
5. Creditors Subject to the Packers and Stockyards Act, 1921	Nearest Packers and Stockyards Administration area supervisor
6. Small Business Investment Companies	Associate Deputy Administrator for Capital Access United States Small Business Administration 409 Third Street, S.W., Suite 8200 Washington, DC 20416
7. Brokers and Dealers	Securities and Exchange Commission 100 F Street, N.E. Washington, DC 20549
8. Federal Land Banks, Federal Land Bank Associations, Federal Intermediate Credit Banks, and Production Credit Associations	Farm Credit Administration 1501 Farm Credit Drive McLean, VA 22102-5090
9. Retailers, Finance Companies, and All Other Creditors Not Listed Above	Federal Trade Commission Consumer Response Center 600 Pennsylvania Avenue, N.W. Washington, DC 20580 (877) 382-4357

 

EXHIBIT A-3

Vermont Fair Credit Reporting Statute, 9 V.S.A.

§ 2480e (1999) § 2480e. Consumer consent 

(a) A person shall not obtain the credit report of a consumer unless: 

    (1) the report is obtained in response to the order of a court having jurisdiction to issue such an order; or 

    (2) the person has secured the consent of the consumer, and the report is used for the purpose consented to by the consumer.

 

(b) Credit reporting agencies shall adopt reasonable procedures to assure maximum possible compliance with subsection     (a) of this section. 

 

(c) Nothing in this section shall be construed to affect: 

(1) 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 

(2) 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) 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 or 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.

 

    (b) 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.

 

    (c) 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.

 

 

EXHIBIT B

ACCESS SECURITY REQUIREMENTS

 

 

The parties acknowledge they must work together to protect the privacy of consumers. The following measures are designed to reduce unauthorized access of consumer reports. In accessing consumer information, End User agrees to implement and maintain the following measures:

 

1. All credentials such as user names/identifiers (user IDs) and user passwords must be kept confidential and must not be disclosed to an unauthorized party. End User agrees it will not discuss its SCC credentials by telephone with any unknown caller, even if the caller claims to be an employee of End User or SCC.

 

2. IT resources owned by the End User but used to access SCC systems (“system access software”), whether developed by it or purchased from a third party vendor, will have End User’s SCC account username and password information “hidden” or embedded and be known only by authorized personnel. End User will assign each user of any system access software a unique logon password to access the End User’s systems or networks. If such system access software is replaced by different access software and therefore no longer is in use or, alternatively, the hardware upon which such system access software resides is no longer being used or is being disposed of, or if the password has been compromised or believed to be compromised in any way, End User will change its password immediately.

 

3. Create a unique user ID for each user to enable individual authentication and accountability for access to SCC’s infrastructure. Each use of the system access software must also have a unique logon password.

 

4. User IDs and passwords shall only be assigned to authorized individuals based on least privilege necessary to perform job responsibilities.

 

5. User IDs and passwords must not be shared, posted, or otherwise divulged in any manner.

 

6. Develop strong passwords that (i) contain a minimum of eight (8) alphanumeric characters for standard user accounts, and (ii) for interactive sessions (i.e. non system-to-system) ensure that passwords are changed periodically (every 90 days is recommended).

 

7. Passwords (e.g. subscriber code passwords, user password) must be changed immediately when (i) any system access software is replace by another system access software or is no longer used, and/or (ii) any suspicion of password being disclosed to an unauthorized party

 

8. Protect all passwords using, for example, encryption or a cryptographic hashing algorithm also known as “one-way” encryption. When using encryption, ensure that strong encryption algorithm are utilized (e.g. AES 256 or above).

 

9. Implement password protected screensavers with a maximum thirty (30) minute timeout to protect unattended workstations. Systems should be manually locked before being left unattended.

 

10. Terminate access rights immediately for users who access consumer information when those users are terminated or when they have a change in their job tasks an no longer require access to that consumer information.

 

Consent and Notice Regarding Electronic Signature

By providing your signature below, you agree to electronically sign the following Services Agreement and Background Screening Requirements Addendum forms for accepting the terms and conditions. You agree your electronic signature is the legal equivalent of your manual signature…

I agree to the SCC Service Agreement, Background Screening Requirements Addendum, and Consent and Notice Regarding Electronic Signature.

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