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.