What is a permissible purpose for accessing a consumer report in the FACT Act context?

• A. A permissible purpose does not require any consent or documentation.
• B. A legitimate purpose such as credit underwriting, employment decisions, insurance underwriting, or tenant screening, with appropriate consent when required.
• C. Only criminal background checks.
• D. Any consumer request without a permissible purpose.

Answer: (B)

Permissible purpose means you can access a consumer report only when there is a legitimate reason tied to a specific decision about the consumer. Under the FACT Act/FCRA, common legitimate purposes include credit underwriting, employment decisions, insurance underwriting, and tenant screening. In these cases, you must have the consumer’s consent when the law requires it, such as for employment or tenancy screenings, to ensure the consumer knows why their information is being pulled and by whom.

This is why the other ideas don’t fit: claiming no consent or documentation is needed ignores the consent requirements that accompany many permissible uses; limiting permissible purposes to criminal background checks is too narrow, as many other legitimate purposes exist; and allowing any consumer request without a permissible purpose violates the rule that access must be for a legitimate, approved reason.