Your Legal Rights
FAIR CREDIT REPORTING ACT
Your Company Name is committed to abiding by all state and federal laws regarding the retrieval and reporting of public records information relating to consumer reports. Specifically, the Fair Credit Reporting Act (FCRA) and its 1996 amendments, have effected the "permissible purposes" for which a consumer report can be obtained and the manner in which information is reported to "users" of the information. Under the requirements of the federal law, users must have a permissible purpose prior to ordering a consumer report (including a background investigation report). Section 604(a) of the FCRA contains a list of permissible purposes under the law. They are:
- As ordered by a court or a federal grand jury subpoena.
- As instructed by the consumer in writing.
- For the extension of credit as a result of an application from a consumer, or the review or collection of a consumer's debt.
- For employment purposes, including hiring and promotion decisions, where the consumer has given written permission.
- For the underwriting of insurance as a result of an application from a consumer.
- When there is a legitimate business need, in connection with a business transaction that is initiated by the consumer.
- To review a consumers' account to determine whether the consumer continues to meet the terms of the account.
- To determine a consumer's eligibility for a license or other benefit granted by a government instrumentality required by law to consider an applicant's financial responsibility or status.
- For use by a potential investor or servicer, or current insurer, in a valuation or assessment of the credit or prepayment risks associated with an existing credit obligation.
- For use by state or local officials in connection with the determination of child support payments, or modifications and enforcement thereof.
The FCRA also requires that end users certify that the consumer report is being obtained for one of the permissible purposes and that the report will not be used for any other purpose. There are also requirements regarding the notification of a consumers rights in the case any type of an "adverse action" is taken against the consumer. Adverse action is broadly defined as having a negative impact on an individuals ability to obtain credit or employment. Additionally, the FCRA outlines the process through which the consumer can dispute the information in a consumer report and their remedies in the case of wrongly reported information. The information above is displayed only as a summary of some of the requirements of the FCRA. This should not be construed as a legal opinion or legal advice. To receive more information on the FCRA, contact the Federal Trade Commission's web site at www.FTC.gov.