An insurer declines an application partly because of information in a consumer report. The Fair Credit Reporting Act requires the insurer to:
Explanation
Adverse action taken wholly or partly on a consumer report triggers a notice to the consumer that identifies the reporting agency, and the consumer may then obtain a copy of the report and dispute anything inaccurate. Withholding the source is exactly what the act forbids, since the consumer could not otherwise correct the file. The act does not require a second report or force the insurer to leave the application pending.
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