Compliance & Regulatory Notices

Section 604(a)(3)(F) of FCRA — legitimate business need in connection with a business transaction initiated by the consumer. ABS is used by higher education institutions in connection with admissions, enrollment, scholarship allocation, and retention decisions initiated by the applicant.

The Fair Credit Reporting Act governs the generation, use, and disclosure of ABS outputs. Where ABS analysis contributes to a decision that constitutes adverse action under FCRA, operators must provide the consumer with notice identifying BERS AI LLC as a reporting source. Institutions subject to FERPA should evaluate whether enrollment decisions using behavioral analysis implicate FERPA's access and disclosure provisions for education records.

Operators must certify a permissible purpose for each ABS inquiry. Where an admissions or enrollment decision results in adverse action, the operator must provide FCRA-compliant adverse action notice to the applicant. Operators may not use ABS outputs to discriminate on the basis of any protected class under federal or applicable state law.

Section 604(a)(3)(C) of FCRA — underwriting of insurance. BRS is used by personal lines insurers in connection with underwriting, rating, and policy renewal decisions for individual consumers.

BRS outputs constitute consumer reports used for insurance purposes under FCRA Part 6. State insurance fair information practice acts impose additional obligations in many jurisdictions, including California (Ins. Code § 791 et seq.), New York, and others. Several states restrict or regulate the use of behavioral or credit-based factors in personal lines rating; operators are responsible for compliance with their applicable state insurance regulatory requirements.

Where a BRS-informed rating or underwriting decision results in adverse action — including declination, non-renewal, or rating higher than the most favorable rate — operators must provide FCRA-compliant adverse action notice identifying BERS AI LLC as a source. State-specific adverse action language may also be required.

Section 604(a)(3)(B) of FCRA — employment purposes (including evaluation for employment, promotion, reassignment, or retention). TVS is used by employers and staffing organizations in connection with pre-employment screening and workforce trust evaluation.

TVS outputs are consumer reports used for employment purposes under FCRA Part 6. The employment context carries the strictest FCRA procedural requirements: operators must provide a standalone written disclosure to the consumer and obtain written authorization before procuring a TVS report. Pre-adverse action requirements apply before any adverse employment decision, followed by a reasonable waiting period, and then final adverse action notice. EEOC guidance on the use of background screening tools requires operators to conduct individualized assessments where a behavioral report may have disparate impact on a protected class. State and local ban-the-box and fair chance hiring laws may impose additional restrictions in certain jurisdictions.

Two-step adverse action process is mandatory: (1) pre-adverse action notice with a copy of the report and Summary of Rights; (2) after a reasonable period, final adverse action notice identifying BERS AI LLC as a source. Operators must maintain written authorization records. Individual assessment documentation is required where disparate impact risk exists.

Section 604(a)(3)(F) of FCRA — legitimate business need in connection with a business transaction initiated by the consumer, and in applicable contexts, Section 604(a)(3)(B) for household employment purposes. FTS is used in the screening of household workers, caregivers, domestic staff, and persons seeking placement in or access to residential care environments.

FTS outputs are consumer reports subject to FCRA. Where FTS informs a decision about a person's access to a residence or their engagement as a household employee, FCRA's adverse action obligations apply. The Fair Housing Act prohibits use of FTS outputs in any manner that discriminates on the basis of race, color, national origin, religion, sex, familial status, or disability in connection with housing access decisions. State caregiver background check statutes in many jurisdictions impose independent licensing and screening requirements that may supplement or interact with FCRA obligations.

Adverse action disclosures are required where FTS analysis contributes to a decision to reject a caregiver candidate or deny placement. Operators may not use FTS outputs to screen against any protected class. In jurisdictions with mandatory caregiver registry checks, FTS supplements but does not replace those statutory requirements.

Section 604(a)(3)(A) of FCRA — in connection with a credit transaction involving the consumer. BPS is used by lenders, creditors, and financial institutions in the origination, underwriting, and account management of consumer credit products.

BPS outputs are consumer reports used for credit purposes under FCRA. The Equal Credit Opportunity Act and Regulation B impose requirements on creditors using consumer reports in credit decisions, including the obligation to provide specific reasons for adverse action. Adverse action notices for credit decisions must comply with both FCRA and ECOA/Reg B requirements. The CFPB supervises FCRA compliance for consumer financial products. Operators must ensure BPS usage does not result in discriminatory credit decisions prohibited by ECOA or the Fair Housing Act (for real estate-secured credit).

Adverse action notices for BPS-informed credit decisions must identify BERS AI LLC as a source and, under ECOA/Reg B, state the principal reasons for the decision. Operators using BPS for real estate-secured credit must comply with Fair Housing Act non-discrimination requirements.

Section 604(a)(3)(F) of FCRA — legitimate business need, and in applicable contexts Section 604(a)(3)(A) for commercial credit evaluation. TQI is used by commercial real estate operators, portfolio lenders, and institutional creditors evaluating commercial tenants and business credit relationships.

TQI analysis of business entities is generally not a consumer report under FCRA and is not subject to FCRA's adverse action or consumer disclosure requirements when the subject is a non-natural-person entity. Where TQI is applied to individual principals of a business, consumer report treatment applies. State commercial lending and commercial tenancy regulations may impose independent obligations in certain jurisdictions. Operators using TQI for commercial portfolio decisioning should consult their legal counsel regarding applicable state-law requirements.

Where TQI is applied to individual guarantors or principals who are natural persons, FCRA consumer report obligations apply, including adverse action disclosure. For entity-level TQI assessments, operators should follow their internal commercial credit policy and applicable state commercial regulations.

Section 604(a)(3)(C) of FCRA — underwriting of insurance; and Section 604(a)(3)(F) for commercial entity assessment. BLES is used by commercial lines insurers in connection with underwriting, rating, and renewal of commercial insurance policies.

BLES outputs used to rate or underwrite commercial insurance for individual business owners or sole proprietors may constitute consumer reports under FCRA. Commercial entity assessments are generally outside FCRA scope. State insurance fair information practice acts and commercial lines regulations vary by jurisdiction; operators are responsible for compliance with applicable state insurance law requirements governing behavioral and non-traditional rating factors. Several states have enacted or proposed restrictions on the use of non-credit behavioral data in insurance rating.

Where BLES informs a commercial insurance decision involving a natural person (sole proprietor, individual business owner), FCRA adverse action obligations apply. Operators must maintain documentation of rating factor compliance with applicable state insurance department requirements and file rating rule amendments where required by state law.

Section 604(a)(3)(F) of FCRA — legitimate business need in connection with a business transaction (rental application) initiated by the consumer. RBS is used by residential landlords, property management companies, and tenant screening services in the evaluation of rental applicants.

RBS outputs are consumer reports under FCRA. The Fair Housing Act prohibits use of RBS in any manner that results in discrimination on the basis of race, color, national origin, religion, sex, familial status, or disability. State tenant screening laws impose additional obligations in many jurisdictions — notably California (Civ. Code § 1785 et seq.), Oregon (ORS 90.295), Washington (RCW 59.18.257), and Colorado — including requirements on what factors may be considered, maximum allowable screening fees, and the form and timing of adverse action notices. Some jurisdictions require source disclosure of screening report providers.

Adverse action notices for RBS-informed rental decisions must identify BERS AI LLC as a source and comply with applicable state-specific tenant screening disclosure requirements. Operators may not use RBS to screen against any class protected by the Fair Housing Act and must conduct individualized assessments where required by applicable HUD guidance or state law.

Section 604(a)(3)(F) of FCRA — legitimate business need in connection with a business transaction initiated by the consumer. SII is used by marketplace operators in connection with seller onboarding, account review, and integrity monitoring for individual sellers on digital marketplace platforms.

SII outputs for individual (natural person) sellers are consumer reports under FCRA. Marketplace operators using SII in account eligibility or suspension decisions must comply with FCRA's adverse action requirements. The FTC Act § 5 unfair or deceptive practices prohibition applies to marketplace platform integrity practices. State consumer protection statutes may impose additional notice or disclosure obligations on marketplace operators. Where SII is applied to business entity sellers, consumer report treatment generally does not apply, but operators should confirm legal analysis with counsel.

Adverse action notices are required where SII analysis contributes to a decision to deny, suspend, or restrict an individual seller's marketplace account. Operators must have a permissible purpose for each SII inquiry and may not use SII to discriminate on the basis of any protected class.

Section 604(a)(3)(F) of FCRA — legitimate business need in connection with a business transaction initiated by the consumer. GTS is used by short-term rental platforms, hospitality operators, and property managers in connection with guest screening and booking eligibility decisions.

GTS outputs are consumer reports under FCRA when used to evaluate individual guests. The Fair Housing Act applies to short-term rental guest screening in many jurisdictions — HUD guidance and state fair housing agencies have asserted jurisdiction over STR platforms, and operators may not use GTS to discriminate on the basis of any protected class. State STR regulations (which vary significantly by municipality and county) may impose independent guest screening requirements or restrictions. The FTC Act applies to deceptive screening practices by platform operators. California, New York, and other high-STR-volume jurisdictions have proposed or enacted fair booking access requirements that may limit or constrain automated guest scoring.

Adverse action notices are required where GTS analysis contributes to a decision to decline or restrict a guest booking. Operators may not use GTS outputs to deny access to guests on the basis of any protected class under the Fair Housing Act or applicable state civil rights law. Operators should review applicable municipal STR ordinances and state fair housing guidance before deploying GTS in jurisdictions with active STR regulatory programs.