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Permissible Purpose under the FCRA

Question: 
Our consumer loan application includes an authorization allowing us to obtain a credit report as a condition of applying for credit. Is that acceptable consumer consent for permissible purpose under FCRA?
Answer: 

Yes. Although FCRA does not require express written consent from the consumer to obtain a consumer report when there is an application for credit initiated by the consumer, it is a good practice to obtain the consumer’s express written consent.

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Learn more about Nancy Derr-Castiglione’s webinar Understanding Fair Credit Reporting Act’s Permissible Purpose

First published on 10/25/2020

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