16 CFR §641.1 — Duties of users of consumer reports regarding address discrepancies (FTC FCRA, motor-vehicle-dealer scope)
16 CFR §641.1 is the FTC implementation of the FCRA address- discrepancy rule (15 U.S.C. §1681c(h)(1)) for users of consumer reports that are motor vehicle dealers excluded from CFPB jurisdiction (per 12 U.S.C. §5519). The rule imposes two operative duties: (i) reasonable-belief — develop and implement reasonable policies and procedures to enable the user to form a reasonable belief that the consumer report relates to the consumer about whom the report was requested when the user receives a notice of address discrepancy from the CRA; and (ii) furnish- confirmed-address — develop and implement reasonable policies and procedures for furnishing a reasonably-confirmed address back to the CRA when three conditions are met (reasonable belief formed, continuing relationship, and regular ordinary-course furnishing relationship with the CRA).
Verbatim regulatory text
Verbatim provisions from 16 CFR §641.1 — Duties of users of consumer reports regarding address discrepancies (FTC FCRA, motor-vehicle-dealer scope) — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
16 CFR §641.1(a)
(a) Scope. This section applies to users of consumer reports that are motor vehicle dealers excluded from Consumer Financial Protection Bureau jurisdiction as described in 12 U.S.C. 5519.
16 CFR §641.1(b)
(b) Definition. For purposes of this section, a notice of address discrepancy means a notice sent to a user by a consumer reporting agency described in 15 U.S.C. 1681a(p) pursuant to 15 U.S.C. 1681c(h)(1), that informs the user of a substantial difference between the address for the consumer that the user provided to request the consumer report and the address(es) in the agency's file for the consumer.
16 CFR §641.1(c)
(c) Reasonable belief—(1) Requirement to form a reasonable belief. A user must develop and implement reasonable policies and procedures designed to enable the user to form a reasonable belief that a consumer report relates to the consumer about whom it has requested the report, when the user receives a notice of address discrepancy. (2) Examples of reasonable policies and procedures. (i) Comparing the information in the consumer report provided by the consumer reporting agency with information the user: (A) Obtains and uses to verify the consumer's identity in accordance with the requirements of the Customer Identification Program (CIP) rules implementing 31 U.S.C. 5318(l) (31 CFR 103.121); (B) Maintains in its own records, such as applications, change of address notifications, other customer account records, or retained CIP documentation; or (C) Obtains from third-party sources; or (ii) Verifying the information in the consumer report provided by the consumer reporting agency with the consumer.
16 CFR §641.1(d)
(d) Consumer's address—(1) Requirement to furnish consumer's address to a consumer reporting agency. A user must develop and implement reasonable policies and procedures for furnishing an address for the consumer that the user has reasonably confirmed is accurate to the consumer reporting agency described in 15 U.S.C. 1681a(p) from whom it received the notice of address discrepancy when the user: (i) Can form a reasonable belief that the consumer report relates to the consumer about whom the user requested the report; (ii) Establishes a continuing relationship with the consumer; and (iii) Regularly and in the ordinary course of business furnishes information to the consumer reporting agency from which the notice of address discrepancy relating to the consumer was obtained. (2) Examples of confirmation methods. The user may reasonably confirm an address is accurate by: (i) Verifying the address with the consumer about whom it has requested the report; (ii) Reviewing its own records to verify the address of the consumer; (iii) Verifying the address through third-party sources; or (iv) Using other reasonable means. (3) Timing. The policies and procedures developed in accordance with paragraph (d)(1) of this section must provide that the user will furnish the consumer's address that the user has reasonably confirmed is accurate to the consumer reporting agency described in 15 U.S.C. 1681a(p) as part of the information it regularly furnishes for the reporting period in which it establishes a relationship with the consumer.
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Source of record: https://claudeforcompliance.com/regs/ftc-16cfr-641-1/
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