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§1681b. Permissible purposes of consumer reports. A consumer reporting agency may furnish a consumer report under the following circumstances and no other: (1) In response to the order of a court having jurisdiction to issue such an order, or a subpoena issued in connection with proceedings before a Federal grand jury.

The FCRA specifies permissible purposes Requiring a company to have a permissible purpose before ordering a report ensures only companies with legitimate needs are able to receive background check reports on candidates. These specified permissible purposes include employment, insurance, credit, and more.

FCRA section 607(b) provides that “whenever a consumer reporting agency prepares a consumer report it shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates.” The Bureau has previously indicated that it is not a reasonable ...

As an initial matter, Section 604 of the FCRA provides the permissible purposes for which a consumer report may be obtained and used. Except for prescreen offers, a consumer reporting agency may provide a consumer report under specific circumstances.

The letter requests that the credit reporting agency (CRA) verify certain accounts listed on the recipient's credit report by providing the original signed consumer contracts, as required by the Fair Credit Reporting Act. It notes fraudulent accounts could be reported without verification.

Examples of things that are not permissible include curiosity, litigation in connection with attempts to collect a debt, marketing, or criminal sanctions. Employees of CRAs who knowingly provide consumer reports to those who do not have a permissible purpose could face up to 2 years of imprisonment.

The FCRA also prohibits the provision of reports that contain medical information for employment purposes without notice and explicit affirmative consent for release of the health data. It is important to note that the FCRA does not apply to investigations performed by companies or individuals who are not CRAs.

Under the FCRA, a furnisher must not provide information to any CRA if they know or have reasonable cause to believe that the information is inaccurate. Furnishers of information are also prohibited from providing information if the consumer has notified them that the information is inaccurate.

When your credit circumstances have changed, and the information in your credit report isn't updated to reflect these changes, this failure might be a violation of the FCRA. Some examples of violations include: failing to report that a debt was discharged in bankruptcy. reporting old debts as new or re-aged.