Purposes for Background Checks

Legally Permissible

Some companies advertise they can get you any information you want on anyone. It is important to note that consumers have privacy rights and the FCRA prohibits delving into someone’s background without a permissible purpose.

Permissible purposes include

 (1)  In response to the order of a court having jurisdiction to issue such an order, or subpoena issued in connection with proceedings before a Federal grand jury
(2)   In accordance with the written instructions of the consumer to whom it relates
(3)   For a credit transaction involving the consumer on whom the information is to be furnished and to whom credit may be extended
(4)   To review or collect a consumer account
(5)   For employment purposes
(6)   For insurance underwriting that involves the consumer
(7)   To determine the consumer’s eligibility for a license or other benefit that reconsidering an applicant’s financial responsibility or status
(8)   To evaluate or assess the credit or prepayment risks associated with an existing on its obligation by a potential investor or servicer or current insurer
(9)   For a legitimate business need such as a transaction initiated by the consumer o review an account to determine whether the consumer is meeting the terms of account as agreed
(10)   In response to a request by the head of a state or local child support enforcement agency or a state or its authorized representative with certification that the cons report is needed to establish ability to pay child support or determine the level i child support payments and that the consumer was provided with at least 10 days prior notice to the consumer that the report will be requested, kept confidential. solely for a purpose described and for no other purpose
(11)   In response to a request from agency administering a state plan under Section 4 the Social Security Act (42 USC § 654) for use to set an initial or modified c the Sta 1 support award

error: Content is protected !!
BACK TO TOP