Compliance Center
Permissible Purpose under the FCRA
The specific, enumerated reasons a business is allowed to access consumer credit information — and the one that makes credit marketing possible.
The definition
Permissible purpose is the FCRA rule that a consumer report may only be obtained for specific, enumerated reasons set out in 15 U.S.C. §1681b. No permissible purpose means no lawful access to the report. For marketing, the relevant permissible purpose is the prescreen / firm-offer-of-credit basis in §1681b(c).
Common permissible purposes
- A credit transaction the consumer initiates (e.g., a finance application).
- A firm offer of credit or insurance — the prescreen basis, §1681b(c).
- Review or collection of an existing account.
- Employment purposes, with the consumer’s written consent.
- A legitimate business need in connection with a transaction initiated by the consumer.
The one that powers marketing
Prescreening under §1681b(c) lets a lender or dealer use credit criteria to build a marketing list — provided every consumer on that list receives a firm offer of credit and the required opt-out notice. This is the lawful path to reach credit-qualified shoppers who have not applied, and it uses a soft inquiry that does not affect the consumer’s credit score.
Primary sources
Fair Credit Reporting Act, 15 U.S.C. §1681b (permissible purposes of consumer reports) and §1681b(c) (furnishing reports in connection with prescreened credit or insurance offers); CFPB Regulation V, 12 CFR Part 1022; and FTC guidance on permissible purpose.
This page is educational and is not legal advice. Confirm your program, offer terms, and disclosures with qualified counsel before you mail. Soft Pull Mailers is not a credit bureau.