Under what condition does a credit union become a consumer reporting agency?

A credit union qualifies as a consumer reporting agency when it reports information that it has gathered from sources beyond its own member experiences. This means that if a credit union collects and disseminates credit information from various external sources, such as other credit institutions or public records, it meets the definition outlined in the Fair Credit Reporting Act (FCRA) and thus operates as a consumer reporting agency.

The significance of this lies in the regulatory responsibilities that accompany the role of a consumer reporting agency, which include ensuring the accuracy of the reported information, providing disclosures to consumers upon request, and adhering to privacy protections. When a credit union only shares its own members' experiences, it does not cross the threshold into becoming a consumer reporting agency, as this information is limited to internal records and does not involve external data collection.

In summary, the correct answer highlights the conditions under which a credit union transitions into the role of a consumer reporting agency based on the breadth of information it reports.