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?

Thanks

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
Opinions stated are not necessarily that of my employer.

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."

CFreasier:

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
danaturner@bankersonline.com
830-535-6500