10/01/08 FACTA Address Discrepancy Rule

The "Address Discrepancy Rule" that will take effect on November 1, 2008, is a rule adopted to help prevent identity theft. This law requires that all users of consumer reports adhere to the regulations regarding address discrepancies whenever they obtain consumer reports from a nationwide Consumer Reporting Agency (CRA). The complete text can be found here:
http://www.ftc.gov/os/fedreg/2007/november/071109redflags.pdf

For Justifacts clients, this would cover any "notice of address discrepancy" from one of the major credit bureaus, Experian or Trans Union. The notice is provided to the user whenever there is a substantial difference between the address provided to the CRA when a consumer report is requested and the address that the CRA has on file for that consumer.

The Address Discrepancy Rule requires that all users have reasonable policies in place to verify the identity of a consumer when a "Notice of Address Discrepancy" is received. In general, all that is required of the end user of a background report is to have a simple, written policy in place describing the steps to be taken to verify the address of the applicant in question whenever there is a significant difference found. This can normally be done be requesting a copy of the applicants drivers license or other proof of current address.

It is important to note that Justifacts is providing this information as a service to our clients. None of the information contained herein should be construed as legal advice, nor is Justifacts engaged to provide legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult your attorney or legal department if you want assurance that our information, and your interpretation of it, is appropriate to your particular situation.