FACTA Applicable to Non-Consumer Loans?

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Question:

Do the FACTA provisions only apply to consumer loans? If not, what other type of loans are affected by the FACTA?

Answer:

The FACTA was merely a series of amendments to the FCRA and is not a stand alone regulation. The FCRA concerns the rights and responsibilities of users and consumers concerning the use of consumer reports. Although, the making of loans is a key reason for the use of a consumer report, the FCRA is much broader and covers a wide variety of issues including pulling a consumer report for any reason, i.e., employment, opening deposit accounts, etc. Can the provisions apply when not dealing with consumer loans, the answer is definitely, depending on the circumstances under which a consumer report is obtained.

First published on BankersOnline.com 10/08/07