September 23, 2019

September 23, 2019

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September 20, 2019

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No Double-Dipping Under FCRA

In an oldie but goodie, an FTC blog from Feb 2017 warns employers who rely on credit checks not to double-dip.  In other words, if an employer requests a consumer report for one purpose, the employer should not then use the report for another purpose.

The FTC explains that, when an employer receives a consumer report from a CRA, it must certify to the CRA the purpose for which the report will be used, and the report should only be used for that purpose.  The FTC provides two examples: “if you get a report for a membership determination, you can’t then use it to make a credit decision. Or if you get a report to determine eligibility for a government benefit, you can’t then give it to a different government agency to make another eligibility determination.”

The importance, according to the FTC?  Transparency. Consumers cannot accurately track how their credit information is being used when a single credit report is used for multiple purposes.

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About this Author

John Hawk Attorney Womble Bond Litigator
Partner

John Hawk is a skilled litigator with over a decade of experience serving the complex and diverse litigation needs of Fortune 500 companies and smaller lenders. He focuses his practice on consumer finance, lender liability and insurance.

Specifically, John routinely defends cases brought pursuant to ERISA, FCRA, TCPA and FDCPA. His clients include life and disability insurance companies, banks and other lenders, and mortgage servicers.

John’s experience includes frequent appearances in state and federal courts, including the South Carolina Court of Appeals and the Supreme...

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