Regulation — federal
FCRA 15 USC 1681 — adverse-action notice + AI-influenced underwriting
The Fair Credit Reporting Act's adverse-action notice provisions apply to every insurance underwriting decision made in whole or in part on the basis of a consumer report. When an AI underwriting classifier uses credit-based insurance scores, criminal records, motor-vehicle records, or any other consumer-report input, FCRA reaches every decline, surcharge, or refer-SIU outcome.
What the regulation actually says
"If any person takes any adverse action with respect to any consumer that is based in whole or in part on any information contained in a consumer report, the person shall — (1) provide oral, written, or electronic notice of the adverse action to the consumer; (2) provide to the consumer written or electronic disclosure … of the numerical credit score used by such person in taking any adverse action based in whole or in part on any information in a consumer report …"
15 U.S.C. § 1681m(a) — adverse-action notice
"Any person who willfully fails to comply with any requirement imposed under this subchapter with respect to any consumer is liable to that consumer in an amount equal to the sum of — (1)(A) any actual damages sustained by the consumer as a result of the failure or damages of not less than $100 and not more than $1,000 …"
15 U.S.C. § 1681n(a) — civil liability for willful noncompliance
What this means in plain English
- Notice. Every adverse-action decision touching a consumer report needs an adverse-action notice to the applicant.
- Specific-reason disclosure. If the AI's score contributed to the decision, the specific factor + numeric score needs to be reconstructable + disclosable.
- Private right of action. Statutory damages $100 to $1,000 per willful violation, plus actual damages, plus attorney fees. Multiplied across an affected group, willful-violation exposure alone reaches into the high six or seven figures very fast.
What triggers the exposure in the sample
~726 potentially-misrouted I3 quotes over the drift window. Each decline / surcharge / refer-SIU decision is an adverse action, and each is subject to FCRA adverse-action-notice reconstruction if the consumer or a plaintiff attorney requests it. Without a decision-record retention pipeline in place at the time of decision, reconstruction is a forensic exercise; with the pipeline, it is a lookup.
What the $499 Snapshot shows against this rule
- 5-decision counterparty-question rehearsal — proves the reconstruction pipeline works structurally
- Model version pinning + decision hash + input snapshot — the record fields FCRA reconstruction actually needs
- Retention key + independent retention pipeline — independence of the record from the actor being recorded
- Signed independent-verifier declaration — the third-party attestation the reconstruction discipline was in place
See the 5-decision reproducibility drill →
$499 Snapshot. 3 business days.
Reconstruction record + retention pipeline proof + signed independent-verifier declaration on your carrier's actual AI surface.
Buy $499
Snapshot credit applies to Baseline ($2,500) or Enterprise Attestation ($35-55K) upgrade within 30 days.