Page 59 - Microsoft Word - NEW 2017 Standard Program.docx

THE FAIR CREDIT REPORTING ACT (FCRA)

The FCRA promotes the accuracy, fairness, and privacy of information in the files of
consumer reporting agencies. The FCRA is enforced by the Federal Trade Commission
(FTC) and penalties for violations of this Act can be severe.

According to the FCRA, a person can access your credit report on if:
1. A court has ordered that the credit report be shared.
2. That person is a lender and you are applying for some form of credit. A creditor may
also pull your credit report if you currently have an account open with them or if you
have a balance that is past due.
3. The person is working on behalf of an insurance company that is underwriting your
insurance or a government agency that is considering giving you a license or other public
benefit, such as social services.
4. An individual has requested your credit report for employment purposes and has obtained
your written authorization to view it.
5. You have given clear instructions to the credit reporting agency to release your
information to a particular person.
6. A person can prove a legitimate business need to view the report. For example, if a
landlord is considering your rental application or a person working on behalf of a retailer
and has accepted a check as a form of payment, he or she can request a copy of your
report.

A recovery agent is not considered to have a legitimate business need to obtain
information from a credit reporting agency.

A skip-tracer who is an employee of the creditor already has information from a
credit reporting agency and can use that information in an effort to locate the
consumer. If an independent skip-tracer (one who is not an employee of the creditor)
wishes to obtain information from a credit reporting agency they must first submit an
application to, and be approved by, that credit reporting agency. If the skip-tracer is
approved the information they can obtain does not include any financial information.

Note: If your client provides you with information obtained from a credit reporting
agency that information should be considered as non-public personal information and
treated as such.

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