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What is a permissible purpose on a credit report?
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Jul 7, 2022 · Permissible Purposes for Furnishing, Using, and Obtaining Consumer Reports. The Consumer Financial Protection Bureau (Bureau) is issuing this advisory opinion to outline certain obligations of consumer reporting agencies and consumer report users under section 604 of the Fair Credit Reporting Act (FCRA). This advisory opinion explains that the ...
Jan 1, 2001 · intends to use the information, as a potential investor or servicer, or current insurer, in connection with a valuation of, or an assessment of the credit or prepayment risks associated with, an existing credit obligation; or. (F) otherwise has a legitimate business need for the information—. (i)
- A. Background
- B. Coverage
- C. Legal Analysis
Consumer reporting agencies collect and assemble or evaluate information about, among other things, the credit, criminal, employment, and rental histories of hundreds of millions of Americans. They package this information into consumer reports, which are used by creditors, insurers, landlords, employers, and others to make eligibility and other de...
Section C.1 of this advisory opinion applies to all “consumer reporting agencies,” as that term is defined in FCRA section 603(f). Section C.2 of this advisory opinion applies to all persons that obtain or use, or seek to obtain or use, “consumer reports,” as that term is defined in FCRA section 603(d).
1. FCRA Section 604
Section 604(a) of the FCRA identifies a limited set of “permissible purposes” for which a consumer reporting company may provide a consumer report to a user. The Bureau is aware that some consumer reporting agencies use insufficient identifiers in matching procedures, such as name-only matching, which can result in the provision of consumer reports to persons without a permissible purpose to receive them. The permissible purposes for which consumer reports are most commonly sought are tho...
2. FCRA Section 604
FCRA section 604(f) prohibits a person from using or obtaining a consumer report “unless . . . the consumer report is obtained for a purpose for which the consumer report is authorized to be furnished under [FCRA section 604]” and “the purpose is certified in accordance with FCRA section 607 by a prospective user of the report through a general or specific certification.” Congress amended the FCRA to include section 604(f) in September 1996. Before the 1996 amendments, FCRA section 6...
Mar 17, 2023 · Advisory Opinion: FCRA permissible purpose requirements for furnishing, using, and obtaining consumer reports. Advisory Opinion: Consumer reporting agencies’ matching practices under the FCRA.
Permissible purpose is defined in Section 604 of the Fair Credit Reporting Act (FCRA). [15 U.S.C. § 1681b] In general. Subject to subsection (c), any consumer reporting agency may furnish a consumer report under the following circumstances and no other: In response to the order of a court having jurisdiction to issue such an order, or a ...
It’s called “permissible purpose,” as defined by the Fair Credit Reporting Act or “FCRA,” and it allows certain companies and employers to access your Equifax credit report in order to make informed decisions about you, such as the likelihood you’ll pay your debts or be a good hire. Who has permissible purpose?
