How does the FACT Act address the use of consumer reports by landlords and employers?

• A. It requires permissible purpose and, in employment decisions, often requires written consent; in housing, providers must comply with applicable provisions and cannot rely solely on a report for discriminatory decisions.
• B. It allows landlords to use consumer reports for any purpose.
• C. It prohibits employers from using consumer reports.
• D. It requires only a verbal consent for housing decisions.

Answer: (C)

Permissible purposes and consent govern how consumer reports can be used by landlords and employers under the FACT Act. For employment decisions, a consumer report may be used only for a legitimate, permissible purpose, and the employer typically must obtain written consent from the applicant before pulling the report. If the employer bases a decision on the report, it must follow required procedures, including providing a copy of the report and a summary of rights, and it must avoid adverse actions without proper notice and opportunity to dispute.

For housing decisions, landlords may also use consumer reports for tenant screening, but only when there is a permissible purpose and in accordance with applicable provisions; they cannot rely solely on the report to make discriminatory or unfair decisions and must consider other factors as appropriate.

So the best answer reflects these safeguards: usage is limited to permissible purposes, employment decisions generally require written consent, and housing decisions must not be based solely on a report and must comply with applicable protections. The idea that employers are prohibited from using consumer reports is incorrect, as is the notion that housing consent can be verbal-only or that landlords can use reports for any purpose.