Notice to Users of Consumer Reports

This is a plain-language summary. The Consumer Financial Protection Bureau (CFPB) publishes the official "Notice to Users of Consumer Reports: Obligations of Users Under the FCRA," which controls. Read the current official version at consumerfinance.gov.

The FCRA (15 U.S.C. § 1681 et seq.) requires that users of consumer reports have a permissible purpose and comply with specific obligations. This notice summarizes the principal responsibilities of users. As a condition of using our services you agree to these obligations; see our Terms of Use.

Obtain a permissible purpose

You may obtain a consumer report only for a purpose the FCRA permits — for example, in connection with a credit or insurance transaction, employment, tenant screening, or another purpose authorized by § 604 of the FCRA. You must not obtain or use a report for any other purpose.

Provide required disclosures and obtain consent (employment)

Before you obtain a consumer report for employment purposes, you must:

make a clear and conspicuous written disclosure to the individual, in a document consisting solely of that disclosure, that a consumer report may be obtained; and
obtain the individual's written authorization before the report is procured.

You must also certify to us that you made the disclosure, obtained the authorization, and will comply with the adverse-action requirements below.

Take the required steps before and after adverse action

If you intend to take adverse action (such as declining to hire, promote, or retain, or denying tenancy) based in whole or in part on a consumer report, you must:

Before taking adverse action, give the individual a copy of the report and a copy of "A Summary of Your Rights Under the FCRA" (a "pre-adverse action" notice); and
After taking adverse action, provide an adverse-action notice that includes our name, address, and telephone number; a statement that we did not make the decision and cannot give the specific reasons for it; and notice of the individual's right to obtain a free copy of the report and to dispute its accuracy or completeness with us.

Use the information only for the certified purpose

You must use the report only for the permissible purpose you certified, must not share it improperly, and must dispose of it securely when it is no longer needed (the FTC Disposal Rule).

Special rules

Investigative consumer reports (based on personal interviews) carry additional disclosure requirements.
Motor-vehicle records must be obtained and used only for purposes permitted by the Driver's Privacy Protection Act.
Financial information must not be obtained through false pretenses (the Gramm-Leach-Bliley Act).
State law may impose additional obligations, including "ban-the-box"/fair-chance and notice requirements.

We provide model disclosure and authorization language and reasonable support to help you meet these obligations, but compliance is your responsibility as the user. Questions? damien@dracosvc.com.

This notice is provided for general information and is not legal advice. The official CFPB model notice controls; confirm the current version with qualified counsel.