Sharing Credit Report with Participating Bank

Question:

Under the Fair Credit Reporting Act, can we furnish a copy of a credit report to a financial institution with whom we have a participation agreement. Example: We denied a loan that would have been a participation loan. That other financial institution wants a copy of the credit bureau report. Can we give it?

Answer:

First, this is a privacy issue. You will need to provide an optout in your privacy disclosure (and the customer does not opt out) before this is possible. Second, this is a contractual issue. Will the credit report agency allow you to do this?

First published on BankersOnline.com 10/20/03