The statute enumerates permissible purposes including credit transactions, employment with consent, insurance underwriting, account review, and legitimate business need in connection with a consumer-initiated transaction.
Obtaining a report without permissible purpose supports a claim.
Alternative Names:
FCRA Permissible Purpose|Permissible Purpose Requirement
Why it Matters?
Account review and collection purposes are frequently asserted and frequently contested, since a report pulled on a closed account or a debt the consumer disputes may fall outside the permitted scope. Documenting the purpose at the time of each pull, tied to a specific account and event, is the record the defense requires. Employment purpose additionally requires disclosure and authorization satisfying the standalone document requirement.
Frequently Confused with
Related terms
Frequently asked questions
Which purposes are frequently contested?
What does employment purpose require?
