We Can...?

ChexSystems, for instance, has a product called Fraud Finder that queries into more databases than what they are permitted to use in a permissible query.

More information can be found at FraudFinder Solution from Efunds

MTT

I wasn't aware that "permissible purpose" limited the type of information that could be included in a "consumer credit report". What information would be included in a "consumer credit report" that you would be allowed to obtain by the mere fact that you obtained written permission over a permissible purpose? Maybe I had a little too much egg-nog over the holidays, but please explain?? Thanks

I haven't looked this up, but somewhere in the recesses of my brain it's telling me you have to have a signature in order to do an investigative report. I'm going to have to dig up FCRA and verify this. If my brain is sending the correct signals (and isn't confused by the sugar high from all of the dessert yesterday) then I guess the question is - Is Fraud Finder and other such services considered an investigative report?

While an investigative report (§ 606. Disclosure of investigative consumer reports [15 U.S.C. § 1681d]) requires additional disclosures to the consumer, I don't believe it requires a consumers signature.

I wonder if this is the way the poster has always done it, more than a technical requirement.

What about this investigative report and the Patriot Act? If the verification process includes something other than a second form of ID, pulling a credit report, or ChexSystem, then we need an additional disclosure?

The FCRA defines an "investigative consumer report" as:
"a consumer report or portion thereof in which information on a consumer's character, general reputation, personal characteristics, or mode of living is obtained through personal interviews with neighbors, friends, or associates of the consumer reported on or with others with whom he is acquainted or who may have knowledge concerning any such items of information. However, such information shall not include specific factual information on a consumer's credit record obtained directly from a creditor of the consumer or from a consumer reporting agency when such information was obtained directly from a creditor of the consumer or from the consumer."

Restrictions on ICRs are here.

It appears to be an issue only if the info came from personal interviews.

No, you do not need an additional disclosure or, as noted above, written permission. If you make the disclosure or obtain permission you are simply using the "belt and suspenders" approach to compliance; i.e. there is no chance you are going to lose your britches.

Like rlcarey, I would be interested in a citation to anything that indicates a requirement to get permission can be triggered based on the breadth of your query.

Ross,
Thanks for the link. I agree with Andy's summary, an ICR requires additional disclosures to the consumer, but not permission.