Permissible purpose: What you should know
Due to the sensitive nature of credit reports,
you must have permissible purpose to order and receive credit reports.
Permissible purpose is regulated by the Federal Trade Commission, the
Fair Credit Reporting Act, the Fair and Accurate Credit
Transactions Act, the Graham-Leach-Bliley
Act, and the three credit bureaus: Experian, Equifax & TransUnion.
An Advantage Credit customer
is allowed to order & receive credit reports to evaluate a consumer's
creditworthiness for mortgage loans and certain other types of credit.
Advantage does not serve detective agencies, investigative companies,
bail bond companies, financial counseling firms, law firms, credit repair
clinics, dating services, or any person who will not be the end user of
the credit report. In other words, customers of credit reports must be
end-customers and not resell or otherwise distribute the reports further.
In order to request a credit
report on a borrower, the Advantage Credit customer must adhere to the
- Verify the identity of the consumer of each report
- Obtain written authorization from the consumer prior to accessing
the credit file (see sample
- Permit Advantage Credit to audit your procedures related to our Membership
- Understand that the three national credit bureaus (Experian, Equifax
& TransUnion) may periodically audit you directly or via Advantage
Credit regarding your compliance with the FCRA
- Maintain all credit information in strict confidence and disclose
only to those whose duties reasonably relate to the legitimate business
purpose for which the information is requested, except as otherwise
required by law
- Certify that you will order credit reports for no other purpose except
in connection with a mortgage loan or other approved application.
- Never order credit reports on yourself, your employees or
any other person unless in specific connection with a mortgage loan.
Note regarding credit
report accuracy: Credit reports are based on information obtained
in good faith by Advantage Credit from one or more consumer credit reporting
agencies. Advantage Credit is unable to guarantee the accuracy of any
credit report's information. The three credit bureaus themselves obtain
data from hundreds of thousands of creditors who report to them, and that
data can be subject to errors by the credit grantors.
However, Advantage Credit does
offer fast correction services for legitimate errors with approved documentation
at the national bureau level, prompting a credit score recalculation in
just 3-10 days. Visit our Accurate Credit™ product
link for more information.
For more information on permissible purpose, contact
us online or call our Legal Compliance department at 800-600-2510,
option 9. You can also review the Membership
Application for more details.