Question & Answer

Question: Is it permissible to pass credit reports on to the consumer? It is our practice to run a credit report on every new employee and every new customer. We don't use it for decision making, but as part of our verifying procedure. Occasionally we are requested to provide a copy of it to the person involved. Can we go over it with them?

Answer: There is nothing in the Fair Credit Reporting Act that prohibits you from providing a copy of the credit report to your customer. There may, however, be something in your state law that does-you'll want to check there.

And one of our advisors says the only other restriction he can think of is in the agreement you have with your credit report provider. You'll probably need to take a look at that before you give a copy to your customer. Your agency or bureau might have great objections.

If credit is denied, the customer can get a copy free from the credit reporting companies. And under recent law, even if they just request it from them, they can get one. That doesn't necessarily mean they can get it through you.

Copyright © 1994 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 4, No. 9, 3/94