As a consumer, it can often feel like corporations and companies dictate our lives. However, it’s imperative to understand that you are not powerless. The United States has a number of important laws and regulations in place to protect consumers from the deceit and manipulation of large companies. One such law is the Fair Credit Reporting Act, which determines a number of matters regarding consumer privacy and accuracy. The FCRA also details permissible purpose, which explains when your information can be accessed. If you’re unsure what your rights are, the following blog explores what you should know about these matters. You’ll also discover the importance of connecting with a San Diego consumer lawyer for additional assistance during these complex matters.
What Is the Function of the FCRA?
The FCRA is a federal law established to help protect the privacy of consumers by regulating who can see your credit report. This is critical, as it means that companies cannot simply pull your credit report and perform hard inquiries without your permission or initiation, as this information is considered private. In addition to determining who can and cannot see your information, you’ll find that this law also helps ensure that your consumer information is accurate and allows you the right to dispute any incorrect information included in the report.
In addition to regulating who can and cannot access your credit report, you’ll find that this law also gives you the right to place a credit freeze on your account if you have reason to believe you are the victim of identity theft. For example, if your identity is compromised in a data leak, you can contact the credit reporting agency to request a freeze, which would prevent anyone from accessing your information without first obtaining a secure PIN.
What Does Permissible Purpose Allow?
In order to access the credit report of a consumer, someone must have a permissible purpose. For example, if you are applying for a loan, the lender will need to access your credit history in order to determine if they should lend money to you. Similarly, if you are applying to rent an apartment, the landlord will want to check your credit history to determine if you make payments on time, as this can determine whether or not you are a good tenant.
However, this doesn’t just determine when your credit report and other consumer information can be obtained – it also establishes regulations surrounding the pulling of credit reports and what is not considered a permissible purpose. For example, companies are prohibited from pulling consumer reports with the intent to sell them. Similarly, they are required to provide written disclosure to a consumer when they procure the report and explicitly state the purpose for pulling the information.
In the event a company pulls your credit information without your permission, they can face serious consequences under the FCRA. Not only can they face penalties from the government in accordance with the FCRA, but as a consumer, you can also file a civil suit to fight for damages.
When your rights as a consumer are violated by companies, it’s imperative to connect with an experienced attorney as soon as possible. At Barthel Legal, our team understands how difficult these matters can be. That’s why our firm is committed to helping guide you through these difficult times. Connect with our team today to discuss your circumstances and learn how we can help you.
