Site Visit Required to Access Credit Report Data
An onsite physical inspection by consumer reporting agencies ("CRAs") was mandated by the credit bureaus in 2003. This requirement was expanded in 2005 to include all clients, with few exceptions. It formalizes the Fair Credit Reporting Act ("FCRA") requirement that CRAs make a reasonable effort to verify the identity of the end-user prior to providing the credit report. Although the site visit may seem like an added layer to the onboarding process, it is a practical and necessary layer of security for consumer data.
What to Expect
The site visit takes approximately 30 minutes and is performed by Xactus, a third-party company approved by the bureaus. An inspector will schedule an appointment with you in advance based on your availability, they will not show up without one. You'll be contacted to schedule your inspection, which costs a one-time fee of $75.
Residential offices can also be inspected, but have additional requirements. See our Residential Office Credit Report Integration article for details.
What the Inspector Will Check
Paper shredders, or a verified third-party shredding service if you're paperless (state this on your application and to the inspector)
Locking filing cabinets, closets, drawers, or other methods to store sensitive information
A locking main office door
Password-protected computers with anti-virus/anti-malware software
Signage: a non-removable sign located on the property indicating the location is permanent
They may also note secondary security features, such as an alarm system or equipment maintenance, though these aren't necessarily required.
Other Things the Inspector Will Do
Ask to see a business card, license, or letterhead
Ask general questions about the business to confirm intent
Take a few photos of the office area, including signage and security features
Timeline
The inspection is generally reviewed within 24 to 48 hours before being released to Xactus, who will follow up if there are any additional questions. Inspections can typically take ~2 weeks to schedule, depending up on availability in your area.
Questions?
You can contact Xactus directly at 888-212-4200.
*Please note: Neither NextChapter nor Xactus are able to waive the onsite inspection. Xactus will have all pertinent information about NextChapter, and the onsite inspection will directly relate to your business practices.