Terms of Use

Introduction

Welcome to Aptly! This website is owned and operated by Invisible Apps, Inc., a Delaware corporation which is doing business as Aptly ("Aptly," "we," "us" or "our"). Please review this page carefully. These Terms of Use ("Terms") constitute a binding legal agreement between you and Aptly and govern your access to and use of our renter screening service, related services, the getaptly.com website and its subdomains (collectively, the "Website" or "Site"), our software applications and mobile versions (the "Apps"), and all portals, products, goods, services, events, interactive features, and other services controlled by us that post a link to these Terms (collectively with the Site and the Apps, the "Services" or the "Platform"). By using the Platform, you agree to be bound by and comply with these Terms. We may update, modify, or otherwise change these Terms at any time. The most current version of the Terms can be viewed by clicking on the "Terms of Use" link posted through the Website. You accept any changes to the Terms by continuing to use the Platform after we post the changes. If you do not agree to the Terms, do not use our Platform.

All references to "you" or "your" in these Terms mean the person that registers for, accesses, or uses the Site, App, or the Platform. If you use or access the Platform on behalf of an entity or individual, you represent and warrant that you have the authority to bind that entity or individual, and "you" and "your" refers to that entity or individual as well. Our Platform is not intended for those under the age of 18 — if you access our Platform, you represent and warrant that you are at least 18 years of age. Please note that these Terms contain an arbitration provision and waiver of class action and jury trial.

Privacy Policy and Other Guidelines

Our privacy policy located at getaptly.com/privacy-policy ("Privacy Policy") is incorporated into these Terms by reference and constitutes a part of these Terms. By using the Platform, you indicate that you understand and consent to the collection, use and disclosure of your information as described in our Privacy Policy. To the extent that additional rules and guidelines affect your use of the Platform, those rules and guidelines are hereby incorporated by reference into these Terms.

Third-Party Links and Content

We provide renter screening services that enable our third-party landlord and property management clients (each, a "Client") to evaluate the identity and qualifications of prospective tenants (each, a "Renter") who have submitted rental applications. To deliver these services, we partner with various third-party service providers who assist in providing specific features and functionalities. As a result, the Platform may contain links to third-party content that take you outside of the Platform ("Third-Party Services"). Except in connection with their use of our Platform, our Clients and other third parties, as well as their Third-Party Services, are not governed by these Terms. We do not control, endorse, sponsor, recommend or otherwise accept responsibility for such Third-Party Services, nor do we make any warranties or representations, express or implied, regarding the content (or the accuracy, currency, or completeness of such content) on any Third-Party Services.

When you follow a link to another website, that website will be governed by different terms of use and a different privacy policy. You acknowledge and agree that we are not responsible for these parties' use of information you provide them. Your use of Client websites and services and/or any Third-Party Services will subject you to the terms of use and privacy policies posted on each such site or service.

In particular, but by no means exclusively, we invite you to review the terms of use and privacy policies of (i) Certn (Canada) Inc. — certn.co/us — who provides income verification and other services to us; (ii) Fiserv, Inc. — fiserv.com — who provides their Verifast personal identification and other services to us; (iii) Get Covered Inc. — getcovered.io — who provides renters insurance offerings and other services; and (iv) LeaseLock, Inc. — leaselock.com — who brokers tenant insurance policies that replace security and pet deposits.

Account Creation

To access and use the Platform, we may require you to first register for an account (your "Account"). You agree to provide accurate, current, and complete information during the registration process, and to update such information to keep it accurate, current, and complete. If you create an Account, you are responsible for maintaining the confidentiality of your account and password, and for restricting access to your computer or device, and you agree to accept responsibility for all activities that occur under your registration, username, password, and/or Account. We therefore urge you not to share your Account credentials with anyone. We may, in our sole discretion, terminate your password, account (or any part thereof) or use of the Platform at any time and for any or no reason. We will not be liable to you or any third party for any termination of your access to the Platform.

True and Accurate Information

You represent and warrant that all information you provide to us or to any of our Clients or to any third party through a Linked Site is accurate, current and complete and you agree to not misrepresent your identity in any way. You further agree to either promptly update your information on the Platform or notify us at [email protected] of any changes to the information you have provided. Please see our Privacy Policy as it governs our collection, use, storage and disclosure of Data and your personal information.

Application & Screening Platform

The Site allows our Clients to easily accept rental applications and conduct screening on Renters for potential placement as a tenant. By using the Platform as a Client, you agree and affirm that (i) you are doing so for the sole purpose of evaluating the tenancy of Renters; (ii) you have lawful authority and intention to execute a lease on a vacant or soon-to-be vacant rental property; (iii) you will use all data, analysis and other information you learn about Renters through your use of the Site ("Data") for legal internal business purposes only to properly evaluate the qualifications of Renters; (iv) all such Data will be treated as confidential information and held in a secure and compliant fashion, properly maintained until you have completed your analysis of each Renter after which all such Data will be promptly deleted; (v) approving or denying rental applications is at your sole discretion; (vi) your evaluation process of each Renter will be compliant with all relevant laws and regulations to include The Fair Credit Reporting Act (FCRA), 15 U.S.C. 1681-1681y; and (vii) Aptly shall not be held liable in any way and you will defend, indemnify and hold us harmless from and against any claims, damages, losses, liabilities, costs and expenses (including reasonable attorneys' fees) arising from or relating to your tenant approval decisions.

Order

You may purchase access to the Platform via an order form, purchase order, separate agreement, or any other instrument as determined by us, which shall be completed and placed either online, in-product, offline, by electronic signature service, or in any other form designated by us (each, an "Order"). Each such Order will list, at a minimum, the Services ordered, the associated fees, the subscription plan and term, as applicable.

Subscription

Unless stated otherwise in an Order, the Services are provided on a subscription basis for the subscription term specified in such Order, in accordance with the respective subscription plan, as applicable, purchased under such Order ("Subscription Term" and "Subscription Plan", respectively, and collectively the "Subscription").

Fees

In consideration for the provision of the Services other than Trial Services (as defined below), you shall pay us the fees set forth in each applicable Order (together, the "Fees"). Unless indicated otherwise, Fees are stated in US dollars. You hereby authorize us, either directly or through our payment processing service or our affiliates, to charge such Fees via your selected payment method, upon the applicable due date. Unless expressly set forth herein, all Fees are non-cancelable and non-refundable. We reserve the right to change the Fees at any time, upon notice to you if such change may affect your existing subscriptions upon renewal.

Taxes

The Fees are exclusive of any and all taxes (including without limitation, value added tax, sales tax, use tax, excise, goods and services tax, etc.), levies, or duties, which may be imposed in respect of these Terms and the purchase or sale, of the Services hereunder ("Taxes"). You shall bear the sole responsibility and liability to pay such Tax and such Tax should be deemed as being added on top of the Fees payable by you.

Upgrades

You may upgrade and/or enhance the Services by either: (i) adding Users; (ii) upgrading to a higher type of Subscription Plan; (iii) adding additional services, products, Add-Ons, features or functionalities; and/or (iv) upgrading to a longer Subscription Term (collectively, "Upgrades"). "Add-Ons" means additional enhancements and/or additional functionalities for the applicable Services for the respective Subscription Plan purchased by you that are made available for purchase, which may be subject to additional Fees.

Adding Users

Any changes to the number of Users within your Account will restart the Subscription Term for all or some of the Services, and you will be billed for the applicable additional Fees at our then-current rates and the Fees already paid by you will be reduced from the new additional Fees, unless otherwise agreed in an Order.

API Use

We may offer an API that provides additional ways to access and use the Services. Any such API is considered a part of the Services, and its use is subject to all of these Terms. You may only access and use our API for your internal business purposes. We reserve the right at any time to modify or discontinue, temporarily or permanently, your access to the API (or any part of it) with or without notice.

Excessive Usage

We have the right, where we believe that you and/or any of your Users have misused the Services or otherwise use the Services in an excessive manner, to offer the Services in different pricing and/or impose additional fees or other restrictions as for the upload, storage, download and/or use of the Services.

Billing

As part of registering, or submitting billing information, to the Services, you agree to provide us with updated, accurate and complete billing information, and you authorize us to charge, request and collect payment from your payment method or designated banking account.

Subscription Auto-Renewal

Your Subscription includes an automatic renewal option by default. Unless you cancel your Subscription prior to expiration, which in the case of an annual Subscription, such cancellation notice shall be no less than 30 days prior to its expiration, the Subscription to the underlying Services will automatically renew upon the end of the then applicable Subscription Term, for a renewal period equal in time to the original Subscription Term and at the same price (subject to applicable Tax changes). If you wish to avoid such auto-renewal, you must cancel your Subscription prior to expiration through your Account settings.

Discounts and Promotions

Unless expressly stated otherwise in an Order, all discounts and promotional offers apply only to your initial Subscription Term and you acknowledge that all Subscription renewals will be at the full applicable Fee at the time of such renewal.

Credits

Any credits that may accrue to your Account for any reason ("Credits") shall expire and be of no further force or effect, upon the earlier of (i) the expiration or termination of the applicable Subscription; or (ii) in case such Credits accrued to an Account with Trial Services that was not upgraded to a Subscription Plan, then upon the lapse of 90 days of the accrual of such Credits. Credits shall have no monetary or exchange value and are expressly not refundable or transferable.

Chargeback

If we record a decline, chargeback or other rejection of a charge of any due and payable Fees (each, a "Chargeback"), this will be considered a breach of your payment obligations, and your use of the Services may be suspended, disabled, or terminated at our sole discretion.

Modification or Discontinuation of Services

We reserve the right to add, modify or discontinue any feature, functionality, or tool on the Platform at our sole discretion. For any material adverse change to core functionality of the Services, we will provide advance notice by: (i) posting an announcement on the Sites, (ii) sending a notification through the Services, and/or (iii) delivering notice via email.

No Contingency on Future Releases and Improvements

You hereby acknowledge that your purchase of the Services and/or Third-Party Services hereunder are not contingent on the delivery by us of any future release of any functionality, feature or service.

Trial Services and Free Versions

From time to time we may offer part or all of our Services on a free, no-obligation trial and/or in connection with a free Subscription Plan to the Services for a limited duration and/or with limited functionality ("Trial Services"). We reserve the right to modify, cancel, and/or limit the Trial Services at any time, with or without notice, and without liability or explanation to you.

Pre-Released Services

We may periodically offer certain Services or features as Alpha or Beta versions ("Pre-Released Services"). These Services are still under development and are provided "AS IS" without any warranties or representations of any kind. Your use of Pre-Released Services is entirely at your own risk.

Governing Terms of Trial Services and Pre-Released Services

The Trial Services and Pre-Released Services (collectively, "Beta Services") are governed by these Terms, provided that all Beta Services are licensed strictly on an "As Is," "With All Faults," and "As Available" basis, with no representations and/or warranties of any kind, whether express or implied. We may modify, suspend, or discontinue any Beta Services at any time without notice or liability to you.

Renter Fees

We charge a fee to each Renter when they successfully submit a rental application. This fee is non-refundable under any circumstances, including but not limited to rejection of the rental application, incomplete processing due to inaccurate information, or any other outcome of the rental decision process. You may be charged more than one fee if your rental application is rejected or cannot be fully processed because you submitted inaccurate or incomplete information.

Smart Access Services

"Aptly Access" refers to the access control services provided by Aptly that allows Clients to remotely unlock, monitor, or otherwise manage smart lock-enabled properties through the Platform. All Clients and Renters using the Platform to access properties represent, warrant, and covenant that (a) they have the full right, power and authority to do so; (b) shall at all times comply with all applicable contracts, terms, property rules, regulations, ordinances, and laws; (c) all temporary or guest access codes are used for lawful, time-limited purposes; (d) certain Aptly Access features may rely on third-party or Aptly-provided smart lock hardware which Clients may be responsible for returning, maintaining, and/or replacing.

By using Aptly Access, you expressly consent to the collection, storage, and use of device and access data, including but not limited to time of entry, user identity, and access logs. Aptly has no knowledge, responsibility, or control whatsoever over the condition of any property. All property access is entirely at your sole discretion and risk. Aptly reserves the right to disable or revoke access credentials at its sole discretion.

Digital Lease

Once a Client has decided to lease property to a particular Renter, they may generate an electronic copy of their lease based on a form they have previously uploaded to the Platform. All Clients and Renters using the Platform to sign a lease hereby represent, warrant and covenant that they have the full right, power and authority to do so and that such lease constitutes a binding agreement of such party. We have no control or responsibility over the content of any such lease.

Rental Insurance

Once Renters have been approved by a Client to lease a property, we may allow such Renters to apply to purchase rental insurance through a third-party insurance partner such as Get Covered. Beyond limited coordination activities, we are not responsible for any other aspects of any such rental insurance. We expressly disclaim any warranties or representations regarding any insurance policies or coverage obtained through the Platform.

Use of Artificial Intelligence

The Platform makes certain artificial intelligence ("AI") tools and agents available that can perform certain automated tasks such as answering inbound telephone calls and conducting outbound telephone calls (each, an "AI Enabled Tool"). The capabilities of AI and the regulation of such capabilities by various local, state/provincial, national governments (collectively, "Government Regulation") is evolving rapidly. Client acknowledges and agrees that Aptly makes no representations or warranties regarding whether each AI Enabled Tool complies with all applicable Government Regulation, and each Client must ensure their use of the Platform, to include use of each AI Enabled Tool complies with all Government Regulation applicable to them.

Additional Terms and Conditions

In connection with your use of the Platform, you may occasionally be asked to consent to policies or terms and conditions in addition to these Terms. Any supplemental terms will not vary or replace these Terms unless otherwise expressly stated. You are solely responsible for maintaining the confidentiality of your account login and password.

Credit Report and Tenant Screening — Fair Credit Reporting Act

As a Renter using the Platform to successfully submit your rental application, the Fair Credit Reporting Act allows you to obtain from each credit reporting agency a disclosure of all the information in your credit file at the time of your application.

As a Renter, you are entitled to receive a free copy of your credit report from a credit reporting agency if:

• You have been denied or were otherwise notified of an adverse action related to credit, insurance, employment, or a government grant or other government benefit within the past sixty (60) days based on information in a credit report provided by such agency.
• You have been denied house/apartment rental or were required to pay a higher deposit than usually required within the past sixty (60) days.
• You certify in writing that you are a recipient of public welfare assistance.
• You certify in writing that you have reason to believe that your file at such credit reporting agency contains inaccurate information due to fraud.

In addition, if you are a resident of Colorado, Maine, Maryland, Massachusetts, New Jersey, or Vermont, you may receive one free copy of your credit report each year. If you are a resident of Georgia, you may receive two free copies each year.

The Fair Credit Reporting Act provides that you may dispute inaccurate or incomplete information in your credit report. You are not required to purchase your credit report from the Site in order to dispute inaccurate or incomplete information.

Consent and SMS

By using the Platform, you agree that we may communicate with you electronically regarding your use of the Platform. To withdraw your consent from receiving electronic notices, please notify us at [email protected]. Clients must obtain any necessary consent to initiate communications with Renters via email, SMS or otherwise. Message and data rates may apply. Message frequency varies. By providing your phone number and consenting to SMS communications, you agree to receive recurring automated marketing messages at the phone number provided. Consent is not a condition of purchase. Reply STOP to cancel, HELP for help.

Prohibited Conduct

You may not access or use, or attempt to access or use, the Platform to take any action that could harm us or any third party, interfere with the operation of the Platform, or in a manner that violates any law(s). For example, and without limitation, you may not:

• Impersonate any person or entity or falsely state or otherwise misrepresent your affiliation with any person or entity
• Engage in unauthorized spidering, scraping or harvesting of content or personal information
• Use of any Data for any purpose other than to properly evaluate the qualifications of Renters
• Obtain or attempt to gain unauthorized access to other computer systems, materials, information or any services available on or through the Platform
• Collect or store personal data about other users of the Platform without proper rights or consent
• Use any device, software or routine to interfere with the proper working of the Platform
• Circumvent, reverse engineer, decipher, decompile, disassemble, decrypt or otherwise alter any of the software comprising the Platform
• Take any action that imposes an unreasonable or disproportionately large load on our network or infrastructure
• Upload or otherwise transmit any communication, software or material that contains a virus or is otherwise harmful
• Violate, or encourage any conduct that would violate, any applicable law or regulation
• Engage in fraud or misuse of the Platform

Violations of system or network security may result in civil or criminal liability. We may suspend or terminate your access to the Platform for any or no reason at any time without notice.

User Content

Unless specifically requested by us in writing, you agree not to submit any confidential, proprietary, or trade secret information to us via the Platform. Any information you submit will be treated as non-confidential and non-proprietary. You remain fully responsible for the materials that you provide to us. You grant Aptly a non-exclusive, worldwide, royalty-free, irrevocable, perpetual right to use your User Content and may delete, modify, reuse, move or remove any User Content at any time.

Intellectual Property

This Platform contains content that is protected under the copyright, trademark and other intellectual property laws of the United States and other countries ("Content"). Unless otherwise provided in these Terms, all intellectual property rights in the Content are owned by us or our third-party licensors to the full extent permitted under United States and international intellectual property laws.

You may print copies of the Content for personal, non-commercial use. You may not publish, reproduce, distribute, display, perform, edit, adapt, modify, or otherwise exploit any part of the Platform without our prior written consent.

Claims of Infringement

We respect the intellectual property of others and require that you do the same. To report alleged infringement, please provide our Copyright Agent the following information: a DMCA Notice of Alleged Infringement identifying the copyrighted work and the infringing material, your contact information, statements of good-faith belief and accuracy under penalty of perjury, and your signature.

Deliver this Notice to: Invisible Apps, Inc., Attn: Legal — Copyright Agent. 2167 East Francisco Blvd, Suite A, San Rafael, California, 94901, United States. Email: [email protected], subject line "DMCA Notice".

Apple Requirements

These Terms apply to your use of all the Platform, including the iOS application available via the Apple, Inc. ("Apple") App Store (the "Application"). Both you and Aptly acknowledge that the Terms are concluded between you and Aptly only, and not with Apple. The Application is licensed to you on a limited, non-exclusive, non-transferrable, non-sublicensable basis. Apple and Apple's subsidiaries are third-party beneficiaries of these Terms.

LeaseLock Requirements

The Platform may enable Clients to offer certain LeaseLock, Inc. services to certain qualified Renters, such as the LeaseLock Zero Deposit service which brokers certain tenant insurance policies as a replacement for security and pet deposits. Aptly reserves the right to offer or not offer the LeaseLock Services to particular Clients at Aptly's sole discretion. Aptly reserves the right to cancel the LeaseLock Services at any time.

Indemnification

You agree to defend, indemnify, and hold harmless Aptly, its parent company, subsidiaries, officers, directors, affiliates, agents, employees, licensors, and suppliers from and against any claims, losses, damages, fines, penalties or other liabilities, including reasonable attorneys' fees and costs, made by any third party due to or arising out of your posting of any content on our Platform, or any other use of our Platform in a manner not permitted by these Terms.

Disclaimer of Warranties

YOUR USE OF THE PLATFORM IS AT YOUR OWN RISK. WE MAKE NO REPRESENTATIONS OR WARRANTIES ABOUT THE OPERATION OF THE PLATFORM OR THE INFORMATION, MATERIALS, GOODS OR SERVICES APPEARING OR OFFERED ON THE PLATFORM, ALL OF WHICH ARE PROVIDED "AS IS." WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, WE DISCLAIM ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY (i) WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE; (ii) WARRANTIES AGAINST INFRINGEMENT OF ANY THIRD-PARTY INTELLECTUAL PROPERTY OR PROPRIETARY RIGHTS; (iii) WARRANTIES RELATING TO THE TRANSMISSION OR DELIVERY OF THE PLATFORM; (iv) WARRANTIES RELATING TO THE ACCURACY, RELIABILITY, CORRECTNESS OR COMPLETENESS OF DATA MADE AVAILABLE ON THE PLATFORM OR OTHERWISE BY APTLY; (v) WARRANTIES OTHERWISE RELATING TO PERFORMANCE, NONPERFORMANCE OR OTHER ACTS OR OMISSIONS BY APTLY OR ANY THIRD PARTY; AND (vi) WARRANTY OF TITLE.

Limitation of Liability

UNDER NO CIRCUMSTANCES, INCLUDING NEGLIGENCE, WILL APTLY BE LIABLE FOR DAMAGES OR LOSSES, INCLUDING, BUT NOT LIMITED TO, DIRECT, INCIDENTAL, CONSEQUENTIAL, INDIRECT, SPECIAL, EXEMPLARY OR PUNITIVE DAMAGES AND LOST PROFITS, ARISING OUT OF YOUR ACCESS, USE, MISUSE OR INABILITY TO USE THE PLATFORM. IN NO EVENT WILL APTLY'S AGGREGATE LIABILITY EXCEED $100 IN THE CASE OF RENTERS OR EXCEED THE GREATER OF $1,000 OR THE AMOUNT PAID BY A CLIENT FOR USE OF THE PLATFORM IN THE TWELVE (12) MONTHS PRECEDING ANY CLAIM IN THE CASE OF CLIENTS. IF YOU ARE DISSATISFIED WITH THE PLATFORM, YOUR SOLE REMEDY IS TO STOP USING THE PLATFORM.

Applicable Law; Jurisdiction

These Terms are governed by, and must be construed in accordance with, the laws of the United States and the State of California, as applicable, without resort to any conflict of laws provisions. By using the Platform, you waive any claims that may arise under the laws of other countries or territories.

Dispute Resolution; Class Action and Jury Trial Waiver

With respect to any and all disputes arising out of or in connection with the Platform or these Terms, Aptly and you agree to first negotiate in good faith. If you and Aptly do not resolve any dispute by informal negotiation within 60 days, then either of the parties may demand mediation under the supervision of JAMS in San Francisco, California. If settlement is not reached within 90 days after service of a written demand for mediation, any unresolved controversy or claim shall be resolved exclusively through binding arbitration in accordance with the rules of JAMS before a single arbitrator in San Francisco, California.

Both you and Aptly understand that you are giving up the right to litigate all disputes in court before a judge or jury. Any proceedings will be conducted solely on an individual basis. No arbitration or proceeding will be combined with another without the prior written consent of all parties. To the extent permitted by law, any claim or dispute under this agreement must be filed within one (1) year.

You agree that Aptly is entitled to obtain preliminary and permanent injunctive relief to enforce any of the terms of these Terms. Any disputes not handled by arbitration shall be filed only in the state and federal courts located in San Francisco, California.

Access Outside the United States

If you are visiting the Platform from a location outside of the United States, be advised that your information may be transferred to servers located in the United States. By using the Platform or providing us with any information, you consent to the transfer to, and processing, usage, sharing and storage of your information in the United States and in other countries.

Uncontrollable Events

We are not liable for any interruption, delay or failure of the Platform resulting from causes beyond our control, including any error or other failure of a Third-Party Services, any law or act of any governmental authority, war, riot, terrorism, insurrection or other hostilities, embargo, fuel or energy shortage, equipment breakdowns, power failure, pandemic, epidemic, fire, flood, earthquake, act of God, strikes, lockouts, labor shortages, or any other similar cause.

Miscellaneous

These Terms, together with any other applicable click-through agreements, constitute the entire agreement between Aptly and you regarding your use of the Platform. In the event any provision of these Terms is held unenforceable, it will not affect the validity or enforceability of the remaining provisions. You agree that no joint venture, partnership, employment or agency relationship exists between you and Aptly as a result of these Terms. These Terms may be assigned by us to a third party in the event of a merger or acquisition. You may not assign your rights or obligations under these Terms without our prior written consent.

Contact

You may contact us at the following address:

Appendix A — Notice to Users of Consumer Reports: Obligations of Users Under the FCRA

The Fair Credit Reporting Act (FCRA), 15 U.S.C. 1681-1681y, requires that this notice be provided to inform users of consumer reports of their legal obligations. State law may impose additional requirements. The text of the FCRA is set forth in full at the Consumer Financial Protection Bureau's Website at www.consumerfinance.gov/learnmore.

I. Obligations of All Users of Consumer Reports

A. Users Must Have a Permissible Purpose

Congress has limited the use of consumer reports to protect consumers' privacy. All users must have a permissible purpose under the FCRA to obtain a consumer report. Section 604 contains a list of the permissible purposes under the law.

B. Users Must Provide Certifications

Section 604(f) prohibits any person from obtaining a consumer report from a consumer reporting agency (CRA) unless the person has certified to the CRA the permissible purpose(s) for which the report is being obtained.

C. Users Must Notify Consumers When Adverse Actions Are Taken

The term "adverse action" is defined very broadly by Section 603 and includes all business, credit, and employment actions affecting consumers that can be considered to have a negative impact.

D. Users Have Obligations When Fraud and Active Duty Military Alerts are in Files

When a consumer has placed a fraud alert or an active duty military alert with a nationwide consumer reporting agency, Section 605A(h) imposes limitations on users of reports obtained from the consumer reporting agency.

E. Users Have Obligations When Notified of an Address Discrepancy

Section 605(h) requires nationwide CRAs to notify users when the address for a consumer provided by the user is substantially different from the addresses in the consumer's file.

F. Users Have Obligations When Disposing of Records

Section 628 requires that all users of consumer report information have in place procedures to properly dispose of records containing this information.

II. Creditors Must Make Additional Disclosures

If a person uses a consumer report in connection with a credit application on material terms that are materially less favorable than those available to a substantial proportion of consumers, the person must provide a risk-based pricing notice.

III. Obligations When Consumer Reports Are Obtained for Employment Purposes

If information from a CRA is used for employment purposes, the user has specific duties set forth in Section 604(b) of the FCRA, including making disclosures, obtaining authorization, and providing copies of reports before taking adverse actions.

IV. Obligations When Investigative Consumer Reports Are Used

Investigative consumer reports involve information obtained through personal interviews. Section 606 requires specific disclosures and certifications when these reports are used.

V. Special Procedures for Employee Investigations

Section 603(x) provides special procedures for investigations of suspected misconduct by an employee or for compliance with applicable laws and regulations.

VI. Obligations of Users of Medical Information

Section 604(g) restricts the use of medical information obtained from consumer reporting agencies. Specific consent and relevance requirements apply depending on the purpose.

VII. Obligations of Users of "Prescreened" Lists

The FCRA permits creditors and insurers to obtain limited consumer report information for use in connection with unsolicited offers of credit or insurance under certain circumstances (Sections 603(l), 604(c), 604(e), and 615(d)).

VIII. Obligations of Resellers

Section 607(e) requires any person who obtains a consumer report for resale to disclose the identity of the end-user, identify permissible purposes, and establish reasonable procedures to ensure reports are resold only for permissible purposes.

IX. Liability for Violations of the FCRA

Failure to comply with the FCRA may subject violators to state and federal government enforcement actions and private lawsuits, including potential civil penalties and damages (Sections 616, 617, and 621). Any person who knowingly and willfully obtains a consumer report under false pretenses may face criminal prosecution (Section 619).