Additional Obligations Regarding the Use of Consumer Reports

Date Last Revised: August 17, 2022

This Addendum is for purposes of Relying Party receiving from Evident “consumer reports” (“Reports”) as that term is defined in the Fair Credit Reporting Act, 15 U.S.C. § 1681 et. seq. (“FCRA”) and applicable state laws. This Addendum is entered into with Relying Party who has executed an underlying “Relying Party Subscription Terms and Conditions” with Evident (“Terms and Conditions”). This Addendum merely supplements the existing Terms and Conditions between the parties and does not modify, amend or delete any existing term therein, including terms of payment or other terms and conditions contained in the underlying Terms and Conditions. This Addendum shall be interpreted with any other Addendums and the Terms and Conditions to form one agreement. Capitalized terms that are not otherwise defined herein shall have the meanings set forth in the Terms and Conditions.

1. RELYING PARTY CERTIFICATIONS AND OBLIGATIONS.

Relying Party certifies that the Reports from the Subscription Services will be used only for one of the following permissible purposes, as indicated below, and that it will not use the information contained in the Reports for any other purpose:

(a) For employment purposes, including contractors, volunteers or evaluating a consumer for employment, promotion, reassignment or retention as an employee where the consumer has given prior written authorization (FCRA § 1681(a)(3)(B)).

(b) In connection with the underwriting of insurance involving the consumer. (FCRA § 1681b(a)(3)(C)).

(c) In accordance with the written instructions of the consumer to whom it relates. (FCRA § 1681b(a)(2)).

(d) For a legitimate business need for the information, in connection with a business transaction that is initiated by the consumer, such as for the purpose of tenant screening. (FCRA § 1681b(a)(3)(F)(i)).

Relying Party shall hold the Reports in strict confidence.  

Relying Party certifies that they shall use Reports (a) solely for the certified use(s); and (b) solely for their exclusive use. Relying Party certifies that each Report will only be used one time.

Relying Party shall comply with all applicable state and federal laws regarding the use of the Reports. 

Relying Party will not use Reports in violation of applicable federal, state or local laws, including but not limited to the FCRA, Title VII of the Civil Rights Act of 1964 and any other equal opportunity laws or regulations.

The Reports shall be requested by, and disclosed by Relying Party only, to Relying Party’s designated and authorized employees having a need to know and only to the extent necessary to enable Relying Party to use the Reports in accordance with this Addendum and the Subscription Terms and Conditions. Relying Party shall ensure that such designated and authorized employees shall not attempt to obtain any Reports on themselves, associates, or any other person except in the exercise of their official duties.

Relying Party certifies to Evident that prior to obtaining Reports for employment purposes from Evident, Relying Party has obtained a clear and conspicuous disclosure in a document made in writing to the consumer, consisting solely of the disclosure, which explains that a consumer report may be obtained for employment purposes.  This disclosure has satisfied all requirements identified in the FCRA.  Relying Party further certifies that it has obtained any other required disclosure that satisfies any applicable state or local laws. Relying Party also certifies that the consumer’s written authorization has been obtained to procure the consumer report.  Relying Party understands that Evident will not initiate a Report for employment purposes in the absence of a written authorization. Relying Party certifies that each time it orders a Report, regardless of the order mechanism, it is reaffirming the above certifications.

If applicable, Relying Party certifies that it shall follow prescribed adverse action procedures as spelled out in the FCRA and applicable state and local laws.  This includes the requirement to provide a consumer with a copy of the Report and A Summary of Your Rights Under the Fair Credit Reporting Act before taking any adverse action against the consumer, based in whole or in part, on a Report provided by Evident. If Relying Party takes adverse action after the appropriate waiting period, Relying Party will issue to the consumer notice of the adverse action taken, including the statutorily required notices identified in Sections 604 and 615 of the FCRA and any applicable state and local laws.  Relying Party will not initiate the pre-adverse and adverse action notice process until Evident has completed all search components of the Report, Evident has provided the complete Report to Relying Party, and Relying Party has reviewed the Report contents.

Relying Party hereby certifies that, under the Investigative Consumer Reporting Agencies Act (“ICRAA”), California Civil Code Sections 1786 et seq., and the Consumer Credit Reporting Agencies Act (“CCRAA”), California Civil Code Sections 1785.1 et seq., if the Relying Party is located in the State of California, and/or the Relying Party’s request for and/or use of Reports pertains to a California resident, applicant, or employee, Relying Party will do the following:

(i) Request and use Reports solely for permissible purpose(s) identified under California Civil Code sections 1785.11 and 1786.12.

(ii) When, at any time, Reports are sought for employment purposes other than suspicion of wrongdoing or misconduct by the consumer who is the subject of the investigation, provide a clear and conspicuous disclosure in writing to the consumer, which solely discloses: (1) that an investigative Report may be obtained; (2) the permissible purpose of the investigative Reports; (3) that information on the consumer’s character, general reputation, personal characteristics and mode of living may be disclosed; (4) the name, address, telephone number, and website of the consumer reporting agency conducting the investigation; and (5) the nature and scope of the investigation requested, including a summary of the provisions of California Civil Code section 1786.22.

(iii) When, at any time, Reports are sought for employment purposes other than suspicion of wrongdoing or misconduct by the consumer who is the subject of the investigation, only request a Report if the applicable consumer has authorized in writing the procurement of the Report.

(iv) When Reports are sought in connection with the hiring of a dwelling unit, notify the consumer in writing that a Report will be made regarding the consumer’s character, general reputation, personal characteristics. The notification shall include the name and address of the consumer reporting agency as well as a summary of the provisions of California Civil Code section 1786.22, no later than three days after the date on which the Report was first requested.

(v) When Reports are sought in connection with the underwriting of insurance, clearly and accurately disclose in writing at the time the application form, medical form, binder, or similar document is signed by the consumer that a Report regarding the consumer’s character, general reputation, personal characteristics, and mode of living may be made, or, if no signed application form, medical form, binder, or similar document is involved in the underwriting transaction, the disclosure shall be made to the consumer in writing and mailed or otherwise delivered to the consumer not later than three days after the Report was first requested. The disclosure shall include the name and address of consumer reporting agency, the nature and scope of the investigation requested, and a summary of the provisions of California Civil Code section 1786.22.

(vi) Provide the consumer a means by which he/she may indicate on a written form, by means of a box to check, that the consumer wishes to receive a copy of any Report that is prepared.

(vii) If the consumer wishes to receive a copy of the Report, Relying Party shall send (or contract with another entity to send) a copy of the Report to the consumer within three business days of the date that the Report is provided to Relying Party. The copy of the Report shall contain the name, address, and telephone number of the person who issued the report and how to contact him/her.

(viii) Under all applicable circumstances, comply with California Civil Code sections 1785.20 and 1786.40 if the taking of adverse action is a consideration, which shall include, but may not be limited to, advising the consumer against whom an adverse action has been taken that the adverse action was based in whole or in part upon information contained in the Report, informing the consumer in writing of Evident’s name, address, and telephone number, and provide the consumer of a written notice of his/her rights under the ICRAA and the CCRAA.

(ix) Comply with all other requirements under applicable California law, including, but, not limited to any statutes, regulations and rules governing the procurement, use and/or disclosure of any Reports, including, but not limited to, the ICRAA and CCRAA.

2. NOTICES.

Relying Party acknowledges receipt of the Notice to Users of Consumer Reports: Obligations of Users under the Fair Credit Reporting Act (available at https://privacy.evidentid.com/pdf-fcra-notice-to-users-of-consumer-reports.pdf).

Relying Party acknowledges receipt of A Summary of Your Rights Under the Fair Credit Reporting Act, (available at https://privacy.evidentid.com/pdf-0096-fair-credit-reporting-act.pdf).

3. DISPOSAL OF INFORMATION CONTAINED WITHIN THE REPORTS.

Relying Party shall properly dispose of the Reports and information arising from the Reports in its possession in a manner which will protect against unauthorized access or use thereof or any actions that would otherwise jeopardize the confidentiality of consumers’ personal information contained in the Reports.  This means having policies and procedures in place that require the burning, pulverizing, or shredding of papers containing personal information so that the information cannot practically be read or reconstructed.  If such information is in electronic format, this includes having policies and procedures in place to destroy or erase such personal information so it cannot practically be read or reconstructed.

4. CRIMINAL PENALTIES.

Relying Party understands that the FCRA imposes criminal penalties against anyone who knowingly and willfully obtains information on a consumer from a consumer reporting agency under false pretenses, including a fine, up to two years in prison, or both, pursuant to Section 619 of the FCRA.

5. LIMITATION OF LIABILITY

RELYING PARTY ACKNOWLEDGES AND AGREES THAT ANY CRITERIA EMBODIED IN THE SUBSCRIPTION SERVICES DISTRIBUTED BY EVIDENT HAS BEEN ESTABLISHED BY AND APPROVED BY RELYING PARTY AND THAT EVIDENT BEARS NO RESPONSIBILITY FOR ESTABLISHING SUCH CRITERIA AND MAKES NO REPRESENTATIONS REGARDING THE VALIDITY, LEGALITY, OR APPROPRIATENESS OF THE CRITERIA. RELYING PARTY FURTHER ACKNOWLEDGES AND AGREES THAT RELYING PARTY IS SOLELY RESPONSIBLE FOR DEVELOPING SUCH CRITERIA AND FOR MAKING ANY DECISIONS BASED ON SUCH CRITERIA. EVIDENT IS NOT RESPONSIBLE FOR, AND EXPRESSLY DISCLAIMS ANY RESPONSIBILITY FOR, DEVELOPING SUCH DECISION CRITERIA OR MAKING ANY DECISIONS BASED ON SUCH CRITERIA. ALL DECISIONS ARE MADE EXCLUSIVELY BY RELYING PARTY, NOT BY EVIDENT. RELYING PARTY AGREES THAT IT ASSUMES FULL RESPONSIBILITY FOR SUCH DECISIONS AND AGREES TO INDEMNIFY AND HOLD EVIDENT HARMLESS FROM ANY AND ALL CLAIMS, LOSSES, DAMAGES, AND ANY COSTS (INCLUDING ATTORNEY’S FEES) THAT MAY BE RELATED TO OR ARISE THEREFROM.

Relying Party shall indemnify, defend and hold harmless Evident, its successors and assigns, officers, directors, employees, agents, vendors, credit bureaus and suppliers from and against any and all claims, suits, proceedings, actual damages, costs, expenses (including, without limitation, reasonable attorneys’ fees and court costs) (“Losses”) brought or suffered by any third party arising or resulting from, or otherwise in connection with Reports provided by Evident, the content, compliance, method of delivery or effectiveness of any notices, pre-adverse or adverse action letters, any breach by Relying Party of any of its representations, warranties, or agreements in this Addendum or its negligence or willful misconduct. Evident shall have no responsibility for consequences of the actions of Relying Party upon the information which Evident provides Relying Party, and Relying Party will indemnify and hold Evident harmless from any loss, liability, damage, judgment, attorney’s fees, costs or penalties which may result from the use by Relying Party of the Reports provided by Evident.