Fair Credit Reporting Act Guidelines
Using Consumer Credit Information for Business Purposes
According to the Federal Trade Commission, the federal Fair Credit
Reporting Act (FCRA) applies when a consumer credit reporting agency,
such as Experian's Information Services Division, furnishes information
from its database on an individual business proprietor. The FCRA
permits Experian to furnish such information to a person Experian has
reason to believe (i) intends to use the information in conjunction
with a credit transaction involving the consumer on whom the
information is to be furnished, and/or involving the extension of
credit to, review of, or collection of an account of the consumer; or
(ii) otherwise has a permissible purpose under the FCRA.
Consistent with the FTC's position, you may access an Experian Business Owner Profile on the following:
- the owner of an unincorporated business;
- general partners in a partnership;
- individuals who have guaranteed in writing the business obligation;
- individuals who have provided you with written authorization approving your review of their personal credit history.
Use Limitations
Generally, you may not obtain an Experian Business Owner Profile unless
you have a permissible purpose under the FCRA. Specifically, except as
outlined previously, you may not obtain an Experian Business Owner
Profile in the following circumstances:
- You may not obtain an Experian Business Owner Profile on an employee of a company you are researching.
- You may not obtain an Experian Business Owner Profile on
yourself, your co-workers, friends, family or acquaintances for
personal, family or household purposes.
- You may not obtain an Experian Business Owner Profile to
prescreen a prospective customer who has not already requested the
formation of a credit relationship.
If a potential customer has not approached you with the intention of
doing business involving the extension of credit (or otherwise given us
written authorization), the necessary relationship has not been
established.
You need to obtain the consent of the business proprietor before
obtaining an Experian Business Owner Profile if you are ordering the
report for a "permissible purpose."
Notification to Principal is Not Required
Although you are not legally required by the FCRA to notify the
principal that information contained in the Experian Business Owner
Profile was the reason for a commercial credit declination, most credit
grantors will provide this notification to the applicant, and often
turn to their consumer loan departments for assistance. Experian
encourages commercial credit grantors to do so as good business
practice. In addition, notice obligations may exist under the Equal
Credit Opportunity Act and Regulation B.
Experian Protects a Consumer Credit File
Experian BOP inquiries will appear on the individual's Experian
consumer credit report and will include your business name and address.
Experian identifies its Experian Business Owner Profile inquiries as
business inquiries so that consumer credit grantors can plainly see
that the Business Owner Profile inquiries are unrelated to the
subject's consumer credit activity.