UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
In the Matter of
FIRST AMERICAN REAL ESTATE SOLUTIONS, LLC,
a limited liability company.
File No.
AGREEMENT CONTAINING CONSENT ORDER
The Federal Trade Commission has conducted an investigation of certain acts and practices
of First American CREDCO, Inc. ("CREDCO"), a corporation. On November 30, 1997,
CREDCO's consumer reporting business was reorganized as an operating division of First
American Real Estate Solutions, LLC, a limited liability company ("First
American" or "proposed respondent"). Proposed respondent, having been
represented by counsel, is willing to enter into an agreement containing a consent order
resolving the allegations contained in the attached draft complaint. Therefore,
IT IS HEREBY AGREED by and between First American Real Estate
Solutions, LLC, by its duly authorized officer, and counsel for the Federal Trade
Commission that:
- 1. Proposed respondent is a limited liability company organized under the laws of
California, with its principal office or place of business at 150 Second Avenue North,
Suite 1600, St. Petersburg, Florida, 33701.
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- 2. Proposed respondent admits all the jurisdictional facts set forth in the draft
complaint.
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- 3. Proposed respondent waives:
a. Any further procedural steps;
b. The requirement that the Commission's decision contain a statement of findings of
fact and conclusions of law; and
c. All rights to seek judicial review or otherwise to challenge or contest the validity
of the order entered pursuant to this agreement.
- 4. This agreement shall not become part of the public record of the proceeding unless
and until it is accepted by the Commission. If this agreement is accepted by the
Commission, it, together with the draft complaint, will be placed on the public record for
a period of sixty (60) days and information about it publicly released. The Commission
thereafter may either withdraw its acceptance of this agreement and so notify proposed
respondent, in which event it will take such action as it may consider appropriate, or
issue and serve its complaint (in such form as the circumstances may require) and decision
in disposition of the proceeding.
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- 5. This agreement is for settlement purposes only and does not constitute an admission
by proposed respondent that the law has been violated as alleged in the draft complaint,
or that the facts as alleged in the draft complaint, other than the jurisdictional facts,
are true. While proposed respondent believes that this agreement and entry of the order
are in its interest, proposed respondent specifically denies the allegations of the
complaint, other than the jurisdictional facts, and denies that it or CREDCO violated any
law as alleged in the complaint or otherwise.
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- 6. This agreement contemplates that, if it is accepted by the Commission, and if such
acceptance is not subsequently withdrawn by the Commission pursuant to the provisions of
Section 2.34 of the Commission's Rules, the Commission may, without further notice to
proposed respondent, (1) issue its complaint corresponding in form and substance with the
attached draft complaint and its decision containing the following order in disposition of
the proceeding, and (2) make information about it public. When so entered, the order shall
have the same force and effect and may be altered, modified, or set aside in the same
manner and within the same time provided by statute for other orders. The order shall
become final upon service. Delivery of the complaint and the decision and order to
proposed respondent by any means specified in Section 4.4 of the Commission's Rules shall
constitute service. Proposed respondent waives any right it may have to any other manner
of service. The complaint may be used in construing the terms of the order. No agreement,
understanding, representation, or interpretation not contained in the order or in the
agreement may be used to vary or contradict the terms of the order.
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- 7. Proposed respondent has read the draft complaint and consent order. Proposed
respondent understands that it may be liable for civil penalties in the amount provided by
law and other appropriate relief for each violation of the order after it becomes final.
ORDER
DEFINITIONS
For the purposes of this order, the following definitions shall apply:
- 1. The term "Fair Credit Reporting Act" ("FCRA") refers to the Fair
Credit Reporting Act, as amended by Public Law 104-208 (Sept. 30, 1996), 15 U.S.C.
§§ 1681-1681u, and as amended in the future.
-
- 2. The terms "person," "consumer," "consumer report,"
"consumer reporting agency," and "file," are defined as set forth in
Sections 603(b), (c), (d), (f), and (g), respectively, of the FCRA, 15 U.S.C.
§§ 1681a(b), (c), (d), (f) and (g).
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- 3. Unless otherwise specified, "respondent" shall mean First American Real
Estate Solutions, LLC, a limited liability company, its successors and assigns, and its
officers, agents, representatives, and employees.
I.
IT IS ORDERED that respondent, directly or through any corporation, subsidiary,
division, or other device, in connection with the collection, preparation, assembly,
maintenance, and furnishing of consumer reports and files, shall comply with Section 611
of the FCRA, 15 U.S.C. § 1681i, including but not limited to the following
provisions:
- A. Subject to Section 611(a)(3), 15 U.S.C. § 1681i(a)(3), if the completeness or
accuracy of any item of information contained in a consumer's file at respondent is
disputed by the consumer and the consumer notifies respondent directly of such dispute,
respondent shall reinvestigate free of charge and record the current status of the
disputed information or delete the information from the file, as required by Section
611(a)(1), 15 U.S.C. § 1681i(a)(1);
-
- B. As required by Section 611(a)(2), 15 U.S.C. § 1681i(a)(2), but subject to
Section 611(a)(3), 15 U.S.C. § 1681i(a)(3),
-
1. Before the expiration of the five (5)-business-day period beginning on the date on
which respondent receives notice of a dispute from a consumer in accordance with Section
611(a)(1), 15 U.S.C. § 1681i(a)(1), respondent shall provide notification of the
dispute to any person who provided any item of information in dispute, at the address and
in the manner established with the person; the notice shall include all relevant
information regarding the dispute that respondent has received from the consumer; and
2. Respondent shall promptly provide to the person who provided the information in
dispute all relevant information regarding the dispute that is received by respondent from
the consumer after the five (5)-business-day period referred to in paragraph B.1. above
and before the end of the thirty (30)-day period beginning on the date on which respondent
receives the notice of the dispute directly from the consumer;
- C. As required by Section 611(a)(4), 15 U.S.C. § 1681i(a)(4), in conducting any
reinvestigation under Section 611(a)(1), 15 U.S.C. § 1681i(a)(1), with respect to
disputed information in the file of any consumer, respondent shall review and consider all
relevant information submitted by the consumer in the period described in Section
611(a)(1)(A) with respect to such disputed information;
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- D. As required by Section 611(a)(5)(C), 15 U.S.C. § 1681i(a)(5)(C), respondent
shall maintain reasonable procedures designed to prevent the reappearance in a consumer's
file, and in consumer reports on the consumer, of information that has been deleted (other
than information that has been reinserted after the person furnishing the information
certifies that the information is complete and accurate, as required by Section
611(a)(5)(B)(i), 15 U.S.C. § 1681i(a)(5)(B)(i));
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- E. Respondent shall provide written notice to the consumer of the results of the
reinvestigation of any item disputed by the consumer under Section 611(a), 15 U.S.C.
§ 1681i(a), not later than five (5) business days after the completion of the
reinvestigation of the item, as required by Section 611(a)(6), 15 U.S.C.
§ 1681i(a)(6), including but not limited to:
-
1. A notice that the consumer has the right to add a statement to the consumer's file
disputing the accuracy or completeness of the information ("dispute statement"),
as required by Section 611(a)(6)(B)(iv); and
2. A notice, as required by Section 611(a)(6)(B)(v), that the consumer has the right to
request that respondent provide either a notification that the item has been corrected or
deleted, or the consumer's dispute statement described in paragraph E.1. above or a
codification or summary of that dispute statement, to any person specifically designated
by the consumer who has received a consumer report that contained the deleted or disputed
information
(a) within two years prior to the consumer's request, for employment purposes; or
(b) within six months prior to the consumer's request, for any other purpose;
- F. If the reinvestigation under Section 611(a), 15 U.S.C. § 1681i(a), does not
resolve the consumer's dispute, respondent shall permit the consumer to file a dispute
statement, as required by Section 611(b), 15 U.S.C. § 1681i(b);
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- G. As required by Section 611(c), 15 U.S.C. § 1681i(c), whenever a consumer files
a dispute statement pursuant to paragraph I.F. above, respondent shall include the
consumer's dispute statement, or a codification or summary of the dispute statement, in
all subsequent consumer reports that respondent prepares concerning the consumer that
contains the information in question, unless respondent has reasonable grounds to believe
the dispute statement is frivolous or irrelevant; and
-
- H. Respondent shall, at the request of the consumer, provide a notification, as required
by Section 611(d), 15 U.S.C. § 1681i(d), that a disputed item has been corrected or
deleted, or the consumer's dispute statement or a codification or summary of that dispute
statement, to any person specifically designated by the consumer who has received a
consumer report that contained the deleted or disputed information
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(a) within two years prior to the consumer's request, for employment purposes; or
(b) within six months prior to the consumer's request, for any other purpose.
II.
IT IS FURTHER ORDERED that respondent and its successors and assigns shall for five (5)
years maintain and upon request make available to the Federal Trade Commission for
inspection and copying all business records demonstrating respondent's compliance with the
terms and provisions of this order.
III.
IT IS FURTHER ORDERED that respondent and its successors and assigns shall deliver a
copy of this order to all current and future principals, officers, directors, and
managers, and to all current and future employees, agents, and representatives having
responsibilities with respect to the subject matter of this order, and shall secure from
each such person a signed and dated statement acknowledging receipt of the order.
Respondent shall deliver this order to such current personnel within thirty (30) days
after the date of service of this order, and to such personnel hired after such date
within thirty (30) days after the person assumes such position or responsibilities.
IV.
IT IS FURTHER ORDERED that respondent and its successors and assigns shall notify the
Commission at least thirty (30) days prior to any change in respondent that may affect
compliance obligations arising under this order, including but not limited to a
dissolution, assignment, sale, merger, or other action that would result in the emergence
of a successor entity; the creation or dissolution of a subsidiary, parent, or affiliate
that engages in any acts or practices subject to this order; the proposed filing of a
bankruptcy petition; or a change in the entity name or address. Provided, however,
that, with respect to any proposed change in the entity about which respondent learns less
than thirty (30) days prior to the date such action is to take place, respondent shall
notify the Commission as soon as is practicable after obtaining such knowledge. All
notices required by this Part shall be sent by certified mail to the Associate Director,
Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission,
Washington, D.C. 20580.
V.
IT IS FURTHER ORDERED that respondent and its successors and assigns shall, within
sixty (60) days after the date of service of this order, and, thereafter, within thirty
(30) days of such other times as the Federal Trade Commission may require, file with the
Commission a report, in writing, setting forth in detail the manner and form in which it
has complied with this order.
VI.
This order will terminate twenty (20) years from the date of its issuance, or twenty
(20) years from the most recent date that the United States or the Federal Trade
Commission files a complaint (with or without an accompanying consent decree) in federal
court alleging any violation of the order, whichever comes later; provided, however,
that the filing of such a complaint will not affect the duration of:
- Any Part in this order that terminates in less than twenty (20) years;
- This order's application to any respondent that is not named as a defendant in such
complaint; and
- This order if such complaint is filed after the order has terminated pursuant to this
Part.
Provided, further, that if such complaint is dismissed or a federal court
rules that the respondent did not violate any provision of the order, and the dismissal or
ruling is either not appealed or upheld on appeal, then the order will terminate according
to this Part as though the complaint had never been filed, except that the order will not
terminate between the date such complaint is filed and the later of the deadline for
appealing such dismissal or ruling and the date such dismissal or ruling is upheld on
appeal.
Signed this _____ day of ______, 1998
FIRST AMERICAN REAL ESTATE SOLUTIONS, LLC
By:
DONALD A. ROBERT
Senior Vice President
FEDERAL TRADE COMMISSION
By:
THOMAS E. KANE
Attorney
Division of Credit Practices
_____________________________________________
LUCY E. MORRIS
Assistant Director
Division of Credit Practices
Counsel for the Federal Trade Commission
APPROVED:
DAVID MEDINE
Associate Director
Division of Credit Practices
JOAN Z. BERNSTEIN
Director
Bureau of Consumer Protection |