In order to access your credit report the law requires the person or organization to have something called the “permissible purpose”.
The Fair Credit Reporting Act lays down the guidelines as to who can access your credit report and under what circumstances. The following is the gist of how and when your credit report can be accessed by who and where.
· By the consumer himself when he stands in a request by writing.
· When legitimate business that fulfills the conditions of the law and in connection with a legitimate business transaction initiated by the consumer.
· When a consumer applies to credit.
· For review, updating and collection of consumers account.
· For making preapproved and prescreened credit offers.
· By the existing creditors for the purposes of updating the portfolio.
· By employers of the purpose of making hiring and promotion decisions after the consumer has given written consent.
· By insurance companies for underwriting insurance for the consumer has made an application.
· For use by state and local officials in connection with determination of child support payments.
· To determine a consumers eligibility for a government license or other benefits if the law requires consideration of the consumer’s financial history.
· When ordered by a court of federal grand jury subpoena.