Chapter 9: Financial Privacy
Permissible Purpose and Certification
A user may obtain a consumer report only with a permissible purpose and must certify that purpose to the CRA, plus certify the report will not be used for any other purpose. Permissible purposes include credit, insurance underwriting, employment with written permission, account review and court orders.
- As instructed by the consumer in writing.
- Extension of credit on a consumer application, or review/collection of an account.
- Employment purposes (hiring, promotion) with the consumer's written permission.
- Underwriting insurance on a consumer's application.
- A legitimate business need in a consumer-initiated transaction.
- Eligibility for a government license or benefit requiring financial review.
- Child-support determinations by state/local officials.
- In response to a court order or subpoena.
- Prescreened firm offers of credit or insurance.
Certify, then use
A user must certify the permissible purpose to the CRA and certify the report will not be used for any other purpose before obtaining it.
Key terms - quick answers
What is “Permissible purpose”?
One of the FCRA-defined reasons (credit, insurance, employment, account review, court order, etc.) that authorizes a user to obtain a consumer report.