UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
WASHINGTON, D.C. 20580

October 23, 1997

Ms. Vivian L. Solganik
OHIO SAVINGS BANK
1801 E. 9th St. - Suite 200
Cleveland, Ohio 44114

Re: FCRA - Employer use of consumer reports

Dear Ms. Solganik:

This responds to your letter dated September 17, 1997, in which you seek the views of the Commission staff on two questions arising under the amended Fair Credit Reporting Act ("FCRA"). We quote each of your questions verbatim, and answer as follows:

1. In the context of using consumer reports for employment purposes, is it permissible to give the notice required under Section 604(b)(3) in the same document as is used to give the adverse action notice which is required under Section 615(a)(2)?

Section 604(b)(3) requires an employer who expects to take adverse action, based in whole or in part on a consumer report, to provide the individual with a copy of the report and a summary of consumer rights under the FCRA before the action is taken. Section 615(a) requires certain notices to be provided after the action is taken. As a result, an employer's compliance with Section 604(b) alone is not enough to comply with Section 615(a), or vice-versa. However, as explained in the attached staff opinion letter (Weisberg, 6/27/97), employers may provide the information required by Section 615(a) in a way that minimizes duplication with that supplied pursuant to Section 604(b)(3).

2. Is it permissible to combine in one form the disclosure required under Section 604(b)(2)(A) with the consumer authorization which is required in Section 604(b)(2)(B), assuming that the disclosure to the consumer and the consumer's authorization are the only elements of the form?

Yes. See attached staff opinion letter (Steer, 10/21/97).

The views set forth in this informal opinion letter are those of the staff, and are not binding on the Commission.

Sincerely yours,

Clarke W. Brinckerhoff