Consumer reporting agencies, under 15 U.S.C.A. § 1681e, must require that prospective users of consumer reports:
identify themselves,
certify the purposes for which the information is sought, and
certify that the information will be used for no other purpose.
Arkansas Prospective User's Certification of Purposes For Which Consumer Reports Will Be Used is a legal document that outlines the different purposes for which consumer reports can be used by individuals or organizations in the state of Arkansas. It serves as a certification by the prospective user, ensuring that they will use the consumer reports in compliance with applicable laws and regulations. The certification of purposes for which consumer reports will be used in Arkansas encompasses various categories, including but not limited to: 1. Employment Screening: Prospective employers may obtain consumer reports for the purpose of evaluating job applicants for employment-related decisions, such as hiring, promotion, retention, or reassignment. 2. Tenant Screening: Landlords or property management companies may request consumer reports to screen potential tenants for rental properties, assess their creditworthiness, and determine their ability to meet rental obligations. 3. Insurance Underwriting: Insurance companies may utilize consumer reports to assess the risk profiles of individuals or businesses when underwriting insurance policies, such as auto, home, health, or liability insurance. 4. Credit Extension: Financial institutions, lenders, or credit providers may request consumer reports to evaluate the creditworthiness and payment history of individuals or businesses applying for loans, credit cards, or other forms of credit. 5. Government Licensing or Benefits: Government agencies may use consumer reports to verify the suitability, eligibility, or qualifications of individuals applying for professional licenses, permits, government benefits, or special programs. 6. Court Proceedings: Attorneys, law enforcement agencies, or individuals involved in legal proceedings may obtain consumer reports to support litigation, investigations, or court judgments. 7. Childcare or Elderly Care Screening: Agencies or individuals providing childcare services or caring for elderly individuals may request consumer reports to assess the safety, trustworthiness, and qualifications of potential employees or caregivers. It is important for prospective users to select the appropriate purpose(s) in their certification form, as there may be legal restrictions, obligations, or specific criteria associated with each purpose. Failure to comply with these regulations may lead to legal consequences or liability. Prospective users should also ensure that they obtain the necessary consent or authorization from the subject of the consumer report before requesting and using such reports, as mandated by the Fair Credit Reporting Act (FCRA) and other relevant statutes and regulations.
