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#620481 - 10/02/06 05:05 PM must we always obtain written ok to get a report?
Trees Offline
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Joined: Apr 2005
Posts: 4,013
I am still struggling with an issue here. I reread the Act this morning. It talks about permissible purposes, etc. but I feel that most of these purposes implies that the user of the report (one the one requesting the report from a credit reporting agency) obtain some kind of written ok from the customer. However, I don't see where that is written except for employment issues. Can you site the aexact article or is it in another reg...like B?? I am working with our subsisiary ins. agency and we are at odds with whether or not they need written ok to get a fresh report (already a customer of the agency). Thanks!!

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#620482 - 10/02/06 06:48 PM Re: must we always obtain written ok to get a report?
Lucy Griffin Offline

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Lucy Griffin
Joined: Nov 2000
Posts: 1,544
The FCRA does not require written authorization to pull a credit report for a legitimate business purpose. Thus, you won't find the written requirement that you are looking for. However, many states do impose such a requirement. It is never safe to ignore state law on privacy protection issues.

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#620483 - 10/03/06 03:23 PM Re: must we always obtain written ok to get a repo
Trees Offline
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Joined: Apr 2005
Posts: 4,013
I guess I am struggling on how to define legitimate business purpose. A new application for ins. coverage is easy. In our case we have long standing customers. When they originally applied for ins. we never had them sign a consent doc. for credit reports as we never ordered them. Now we would like to obtain a few quotes from different insurers for these customers - to make sure our customers are not paying more than they have to. I am not sure if ordering a report under this set of circumstances equates to legitimate business purposes. We would actually be ordering a credit report on John Doe who has purchased insurance through this agency for years. His actual application continues to be the operative document. The only changes are switching autos. From the federal perspective, then, do you see anything wrong with ordering a report?

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#620484 - 10/03/06 06:35 PM Re: must we always obtain written ok to get a repo
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,016
Bloomington, IN
Quote:

The only changes are switching autos.




If this statement means they have traded vehicles, then wouldn't you be issuing a new policy for the newly acquired vehicle? In that case I think you have a good argument that you have a legitimate business purpose.
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The opinions expressed are mine and they are not to be taken as legal advice.

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