Compliance Center

What is a Firm Offer of Credit?

The permissible-purpose basis under the FCRA that lets a dealer market to consumers using their credit data — including people who never applied.

The definition

A Firm Offer of Credit is a genuine offer of credit extended to a consumer who was selected using prescreened credit information — an offer the consumer will receive as long as they continue to meet the criteria used to select them. Under the Fair Credit Reporting Act (15 U.S.C. §1681b(c)), a firm offer is the permissible purpose that lets a lender or dealer use bureau credit data to market to consumers, including people who have not applied for anything.

What a compliant firm offer must include

A bona fide offer of credit the consumer can actually accept.
The criteria the consumer must continue to meet to receive it.
A clear and conspicuous prescreen opt-out notice (FCRA §1681m(d)).
The consumer protections and a way to opt out of future prescreened offers.

Why dealer credit mailers are firm offers

When a dealer markets to consumers using their credit data — a soft pull lead, a prescreen mailer — the FCRA generally requires that the solicitation be a firm offer of credit. That is what makes prescreen targeting permissible: the dealer is prepared to extend a real offer to everyone mailed who still qualifies, rather than simply advertising to a bought list.

Primary sources

Fair Credit Reporting Act, 15 U.S.C. §1681a(l) (definition of “firm offer of credit or insurance”), §1681b(c) (prescreen permissible purpose), and §1681m(d) (required opt-out notice); CFPB Regulation V, 12 CFR 1022.54 (prescreen opt-out notice); and the FTC’s guidance on prescreened credit and insurance offers.

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.

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