15 U.S.C. §1681b — Permissible purposes of consumer reports
FCRA statutory permissible-purposes section. Lists the circumstances under which a consumer reporting agency may furnish a consumer report and under which a user may obtain one. Drives [LENDER]'s permissible-purpose certification at credit pull and the limits on prescreening, employment, and child-support uses.
Verbatim regulatory text
Verbatim provisions from 15 U.S.C. §1681b — Permissible purposes of consumer reports — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
15 U.S.C. §1681b(a) — General permissible-purpose rule
(a) In general Subject to subsection (c), any consumer reporting agency may furnish a consumer report under the following circumstances and no other:
15 U.S.C. §1681b(a)(3)(A) — Credit-transaction permissible purpose
intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer ; or
15 U.S.C. §1681b(b)(1) — Employment-purpose CRA certification
(1) Certification from user A consumer reporting agency may furnish a consumer report for employment purposes only if—
15 U.S.C. §1681b(b)(2) — Pre-employment disclosure and authorization
(A) In general Except as provided in subparagraph (B), a person may not procure a consumer report , or cause a consumer report to be procured, for employment purposes with respect to any consumer, unless—
15 U.S.C. §1681b(a) — General permissible-purpose rule — enumerated items (chapeau recall fix)
(1) In response to the order of a court having jurisdiction to issue such an order, a subpoena issued in connection with proceedings before a Federal grand jury, or a subpoena issued in accordance with section 5318 of title 31 or section 3486 of title 18 . (2) In accordance with the written instructions of the consumer to whom it relates. (3) To a person which it has reason to believe— (A) intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer ; or (B) intends to use the information for employment purposes ; or (C) intends to use the information in connection with the underwriting of insurance involving the consumer ; or (D) intends to use the information in connection with a determination of the consumer ’s eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant’s financial responsibility or status; or (E) intends to use the information, as a potential investor or servicer, or current insurer, in connection with a valuation of, or an assessment of the credit or prepayment risks associated with, an existing credit obligation; or (F) otherwise has a legitimate business need for the information—
15 U.S.C. §1681b(b)(2) — Pre-employment disclosure and authorization — enumerated items (chapeau recall fix)
(i) a clear and conspicuous disclosure has been made in writing to the consumer at any time before the report is procured or caused to be procured, in a document that consists solely of the disclosure, that a consumer report may be obtained for employment purposes ; and (ii) the consumer has authorized in writing (which authorization may be made on the document referred to in clause (i)) the procurement of the report by that person. (B) Application by mail, telephone, computer, or other similar means If a consumer described in subparagraph (C) applies for employment by mail, telephone, computer, or other similar means, at any time before a consumer report is procured or caused to be procured in connection with that application— (i) the person who procures the consumer report on the consumer for employment purposes shall provide to the consumer, by oral, written, or electronic means, notice that a consumer report may be obtained for employment purposes , and a summary of the consumer’ s rights under section 1681m(a)(3) 1 of this title; and (ii) the consumer shall have consented, orally, in writing, or electronically to the procurement of the report by that person. (C) Scope Subparagraph (B) shall apply to a person procuring a consumer report on a consumer in connection with the consumer’ s application for employment only if— (i) the consumer is applying for a position over which the Secretary of Transportation has the power to establish qualifications and maximum hours of service pursuant to the provisions of section 31502 of title 49 , or a position subject to safety regulation by a State transportation agency; and (ii) as of the time at which the person procures the report or causes the report to be procured the only interaction between the consumer and the person in connection with that employment application has been by mail, telephone, computer, or other similar means.
15 U.S.C. §1681b(a) — General permissible-purpose rule — enumerated items (chapeau recall fix) — enumerated items (chapeau recall fix)
(i) in connection with a business transaction that is initiated by the consumer ; or (ii) to review an account to determine whether the consumer continues to meet the terms of the account. (G) executive departments and agencies in connection with the issuance of government-sponsored individually-billed travel charge cards.