1
EXHIBIT 10.5
AGREEMENT FOR SERVICE
Client_________________________________ Account #_______________________________
Address ________________________________________________________________________
City __________________________________ State ________________ Zip _____________
Additional locations covered by this agreement: ________________________________
Intended use of credit reports: ________________________________________________
The undersigned Client, desiring to receive consumer credit reports from
TrueLink, Inc. ("TrueLink") utilizing consumer credit information from Equifax
Credit Information Services ("ECIS") and/or Trans Union Credit Information
Services ("TU"), and/or EXPERIEN Information Services (formerly known as TRW)
("EXPERIEN") (hereinafter "Repository(ies)"), agrees that all consumer credit
reports will be received subject to the following conditions:
I. Client certifies that consumer credit information, as defined by the
Fair Credit Reporting Act ("FCRA") 15 U.S.C. 1681 et seq., will be
ordered only in connection with a business transaction involving a
consumer. This transaction must be a "permissible purpose" under the
FCRA. Consumer credit information will be requested only for our
exclusive use and held in strict confidence, and will not be disclosed
to any third party, except as required by law, and will not be resold.
Our employees will be forbidden from attempting to obtain credit reports
on themselves, associates or any other persons, except in the exercise
of their official duties. Credit reports will not be ordered for
employment purposes. Client will receive and retain a signed
authorization form from each consumer before Client orders a credit
report.
Client agrees to direct any credit report consumer inquiries to TrueLink
and to the applicable Repository(ies), all pursuant to the FCRA.
Client has read and acknowledged TrueLink's access security
requirements.
Client agrees to hold TrueLink, Repositories, and their agents harmless
from any expense or damage arising or resulting from the improper use or
disclosure of consumer credit information contrary to these conditions
or the FCRA, by Client, our employees or agents.
II. TrueLink, Repositories, and their agents, employees, and independent
contractors will use good faith efforts in attempting to obtain consumer
credit information from sources deemed reliable but does not guarantee
the accuracy of the reported information. TRUELINK AND THE
REPOSITORY(IES) WILL NOT BE RESPONSIBLE OR LIABLE FOR ANY LOSS OR
DAMAGES CAUSED BY ANY OF ITS AGENTS AND EMPLOYEES IN CONNECTION WITH THE
PREPARATION OF CREDIT REPORTS EXCEPT FOR INSTANCES OF GROSS NEGLECT,
RECKLESSNESS OR WILFUL MISCONDUCT.
2
III. If Client elects to communicate with TrueLink's computer system, Client
will have equipment that enables it to order and/or receive credit
reports from TrueLink, and agree that such equipment will be operated
only by Client's designated employees who shall have read and understood
the training information provided by TrueLink. Client agrees to take all
necessary measures to prevent unauthorized use of this equipment by any
person other than our designated employees. CLIENT AGREES THAT, WITH
REGARD TO THE OPERATION OF OUR EQUIPMENT, TRUELINK AND REPOSITORY(IES)
AND ALL OF THEIR AGENTS SHALL NOT BE LIABLE FOR TRANSMISSION DISTORTION,
INTERRUPTIONS OR FAILURE, OR FOR ANY RESULTING CONSEQUENTIAL OR SPECIAL
DAMAGES WHATSOEVER.
IV. Client agrees that any creditworthiness score ("Score") received from
TrueLink is not intended to be and shall not be the only factor in
deciding to grant or deny credit. CLIENT UNDERSTANDS THAT THE ACCURACY
OF ANY SCORE IS NOT GUARANTEED BY TRUELINK AND, EXCEPT FOR AN AMOUNT
EQUAL TO WHAT CLIENT PAID TRUELINK FOR SUCH SCORE, CLIENT RELEASES
TRUELINK AND ITS AGENTS, EMPLOYEES AND INDEPENDENT CONTRACTORS FROM
LIABILITY FOR NEGLIGENCE IN THE PREPARATION AND DELIVERY OF THE SCORE
AND FROM ANY LOSS OR EXPENSE SUFFERED BY US RESULTING DIRECTLY OR
INDIRECTLY FROM THAT SCORE EXCEPT FOR INSTANCES OF GROSS NEGLECT.
V. Client agrees to pay in full, according to TrueLink's payment terms, as
they may vary from time to time, plus interest at 10% per annum for
overdue amounts and all attorney fees for collecting from us.
VI. If applicable, Client agrees to comply with the Real Estate Settlement
Procedures Act ("RESPA"), 27 U.S.C. 2601 et. seq., and specifically with
the anti-kickback prohibitions contained therein.
VII. A five day written notice by either party sent first class mail will
cancel this agreement, but the obligations and agreements of the
undersigned set forth in sections I, II, III, IV and V above will remain
in force.
VIII. No changes may be made to this agreement and the addendum hereto, except
in writing by the parties hereto. The person signing this agreement on
behalf of the Client is a duly authorized representative of Client with
all powers required to execute this agreement.
2
3
FCRA REQUIREMENTS
Federal Fair Credit Reporting Act (FCRA - Public Law 91-508)
Although the FCRA primarily regulates the operations of consumer credit
reporting agencies, it also affects you as the user of information. We suggest
that you and your employees become familiar with the following sections of the
FCRA in particular:
Section 604. Permissible Purposes of Reports.
Section 610. Conditions and form of disclosure to consumers.
Section 615. Requirements on users of consumer reports.
Section 616. Civil liability for willful noncompliance.
Section 617. Civil liability for negligent noncompliance.
Section 619. Obtaining information under false pretenses.
Section 620. Unauthorized disclosures by officers or employees.
Each of these is of direct consequence to users who obtain reports on consumers.
As directed by law, credit reports may be issued only if they are to be used for
extending credit, review or collection of an account, underwriting insurance or
in connection with some other legitimate business transaction such as an
investment, partnership, etc.
TrueLink strongly endorses the letter and spirit of the Federal Fair Credit
Reporting Act. We believe that this law and similar state laws recognize and
preserve the delicate balance between the rights of the consumer and the
legitimate needs of commerce.
In addition to the Federal Fair Credit Reporting Act, other federal and state
laws addressing such topics as computer crime and unauthorized access to
protected databases have also been enacted. As a prospective user of consumer
reports, we expect that you and your staff will comply with all relevant federal
statutes and the statutes and regulations of the states in which you operate.
We support consumer reporting legislation that will ensure fair and equitable
treatment for all consumers and users of credit information.
ACCESS SECURITY REQUIREMENTS
It is a requirement that all end users take precautions to secure any system or
device used to access consumer credit information. To that end, the following
requirements have been established:
o Your account number and password must be protected in such a way
that this sensitive information is known only to key personnel.
Under no circumstances should unauthorized persons have
knowledge of your password. The information should not be posted
in any manner within your facility.
o Any system access software you may use, whether developed by
your company or purchased from a third party vendor, must have
your account number and password "hidden" or embedded so that
the password is known only to supervisory personnel. Each user
of your system access software must then be assigned unique
log-on passwords.
3
4
o Your account number and passwords are not to be discussed by
telephone to any unknown caller, even if the caller claims to be
an employee.
o The ability to obtain credit information must be restricted to a
few key personnel.
o Any terminal devices used to obtain credit information should be
placed in a secure location within your facility. Access to the
devices should be difficult for unauthorized persons.
o Any devices/systems used to obtain consumer reports should be
turned off and locked after normal business hours, when
unattended by your key personnel.
o Hard copies and electronic files of consumer reports are to be
secured within your facility and protected against release or
disclosure to unauthorized persons.
o Hard copy consumer reports are to be shredded or destroyed,
rendered unreadable, when no longer needed and when it is
permitted to do so by applicable regulation(s).
o Electronic files containing consumer report data and/or
information will be completely erased or rendered unreadable
when no longer needed and when destruction is permitted by
applicable regulation(s).
o Software cannot be removed or copied. Software is issued
explicitly to the company for credit reporting purposes only.
ANY PERSON WHO KNOWINGLY AND WILLFULLY OBTAINS INFORMATION ON A CONSUMER FROM A
CONSUMER REPORTING AGENCY UNDER FALSE PRETENSES, SHALL BE FINED NOT MORE THAN
$5,000 OR IMPRISONED NOT MORE THAN ONE YEAR, OR BOTH.
TO BE COMPLETED BY CLIENT
Accepted by:______________________________________ Title:_______________________
Mortgage ▇▇▇▇▇.▇▇▇, Inc.
Signature_________________________________________ Date:________________________
TO BE COMPLETED BY CLIENT
Accepted by:______________________________________ Title:_______________________
BNC Mortgage, Inc.
Signature_________________________________________ Date:________________________
TO BE COMPLETED BY TRUELINK, INC.
Accepted by:______________________________________ Title:_______________________
Signature_________________________________________ Date:________________________
4
5
CONTRACT ADDENDUM
[To be added as required by each investor]
Date:___________________________________
5