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From: Al Petrofsky <a...@petrofsky.org>
Newsgroups: misc.consumers,misc.invest.stocks
Subject: Is McDonald Information Service (MIS) an FCRA-covered CRA?
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Date: 02 Aug 2003 18:59:03 -0700
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misc.invest.stocks:272054

I know someone who has been told by a brokerage that his
recently-opened account with them has been restricted because some
other brokerage reported to the McDonald Information Service (MIS)
that he had failed to pay the other brokerage $800 as agreed in 1998.
This person says he has no idea what incident the MIS record is
referring to.  The new brokerage says they don't have any details (not
even the name of the other firm that reported the problem) and just
gave him the address of MIS and said he could take it up with them.

On the MIS website, callmis.com, it describes itself as "the eyes
and ears of Wall Street".  Some quotes from its brochure,
http://www.callmis.com/web_site/images/MISBROCHURE(1).pdf:

  Our comprehensive database contains more than 100 million names and
  more than 3 million names of problem accounts.

  When a member initiates an inquiry into the MIS system, all
  available pertinent information will be reported to the inquiring
  member.

  Our negative database contains the names of all accounts reported to
  us by our members themselves, where a firm has had any type of
  problem, sustained a loss, or encountered a situation that would
  cause them to mark any account "accept no further business".

It sounds like a credit bureau to me, but unlike equifax, transunion,
and experian, MIS has no instructions on its website for how to order
a copy of your file and how to have erroneous information removed from
it.  Also, they say:

  A member's identity will never be divulged to anyone.  MIS has a
  reputation that it has earned over the years as the most reliable,
  confidential credit source available.  There has never been, nor
  will there ever be, a breach of this confidence.

... which makes me wonder how an investor is supposed to correct
negative reports about him that resulted from errors or from impostors
using his name.

Is MIS covered by the Fair Credit Reporting Act (FCRA)?  The FCRA
says:

   The term "consumer reporting agency" means any person which, for
   monetary fees, dues, or on a cooperative nonprofit basis, regularly
   engages in whole or in part in the practice of assembling or
   evaluating consumer credit information or other information on
   consumers for the purpose of furnishing consumer reports to third
   parties, and which uses any means or facility of interstate
   commerce for the purpose of preparing or furnishing consumer
   reports.

I'm not sure what exactly "third parties" means there.  Is MIS exempt
from the FCRA because it only provides reports to MIS members?

If the FCRA does not apply, then what is the procedure for someone to
clear his name?

I am of course advising this person to write to MIS, but I'm trying to
figure out what his rights are before helping him draft a letter.

Thanks in advance for any information about this.

-al