It’s not uncommon for us to find violations related to pulling credit reports. First and foremost, an institution must have a permissible purpose to do so. A permissible purpose is any legitimate business purpose initiated by a consumer. So, for example, if someone comes in to open a new account, apply for a loan, etc., that would be a permissible purpose to pull a credit report. We do recommend institutions have some way to demonstrate their permissible purpose. For instance, maybe you keep a signed application, signature card, or other documentation to justify why you pulled the credit report.
Kevin explains more in the video.
Published
2025/11/14