If a person requesting a consumer report is told there is a discrepancy between the address provided and the address in the report, what must the lender do?

• A. Ignore the discrepancy and proceed.
• B. Notify the consumer reporting agency about the discrepancy.
• C. Immediately terminate the application.
• D. Form a reasonable belief that the report relates to the consumer in question.

Answer: (D)

When a lender reviews a consumer report and the address provided doesn’t match the address in the file, the lender must take steps to ensure the report actually belongs to the applicant before using it. The required action is to form a reasonable belief that the report relates to the consumer in question. This means verifying identity through additional information or steps (such as contacting the applicant or the reporting agency) to confirm the match, rather than proceeding or dismissing the discrepancy outright. only after establishing that the report pertains to the consumer may the lender move forward with the decision.

Ignoring the discrepancy or terminating the process immediately aren’t appropriate responses to this mismatch, as they can lead to misidentification or improper denial. While contacting the reporting agency can be part of resolving the discrepancy, the essential duty is to form a reasonable belief that the report relates to the consumer before relying on it.