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#1275 - 04/10/01 03:12 PM Credit Reports
CFreasier Offline
Junior Member
Joined: Mar 2001
Posts: 25
Corpus Christi, TX, USA
I know that authorization must be given by a potential borrower before running a credit report. Can anyone tell me what reg this falls under?


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General Discussion
#1276 - 04/11/01 04:15 AM Re: Credit Reports
Andy_Z Offline
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Joined: Oct 2000
Posts: 27,746
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The FCRA says that a credit report can only be furnished for a permissable reason. Whether or not you are a Credit Reporting Agency, your contract with your bureau will say that you certify that you will only request reports when these reasons exist.

Andy Zavoina
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My opinions are not necessarily my employers.
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#1277 - 04/16/01 02:54 PM Re: Credit Reports
Lucy Griffin Offline

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Lucy Griffin
Joined: Nov 2000
Posts: 1,544
The Fair Credit Reporting Act defines the purposes for which a creditor may obtain a credit report. These purposes are the "permissible purposes" that are created by the Act itself. One of the permissible purposes is to evaluate a consumer's request for credit. Thus, pulling a credit report is fairly automatic in consumer credit applications.

You may also obtain the consumer's report with the consumer's permission. This is the path you must follow when a business applies for credit and you want to check the credit history of the business owners and principals.

Check the sections of FCRA that discuss "permissible purpose."

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#1278 - 04/21/01 02:43 PM Re: Credit Reports
Dana Turner Offline

Platinum Poster
Dana Turner
Joined: Dec 2000
Posts: 543
Pipe Creek TX - U.S.

If you haven't already done so, I suggest that you add the phrase "initial and continuing consent" to your waiver form so that you can run the credit reports as needed without obtaining additional waivers.

This is also a valuable technique to use with background investigations involving all categories of applicants -- employment, lending and new accounts.

Dana Turner
Security Education Systems

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