Eva Migliore, By Her Next Friend Joseph Migliore v. Sunlight Financial LLC, et al.

As a bulwark to protect consumer privacy and the highly sensitive content of consumer credit reports, the Fair Credit Reporting Act (FCRA) strictly limits the dissemination and use of consumer reports to select “permissible” purposes “and no other.” 15 U.S.C. § 1681b(a); b(f). Under the FCRA, it is a permissible purpose to use or obtain a consumer report “in connection with a credit transaction involving the consumer,” but only if the transaction is “initiated by the consumer.” 15 U.S.C. § 1681b(a)(3)(A), subject to 15 U.S.C. § 1681b(c). If the transaction is not initiated by the consumer, using or obtaining the consumer report is permissible if “the consumer authorizes” it. 15 U.S.C. § 1681b(c). The Seventh and Ninth Circuits have so held. Is it permissible for a company to use or obtain a credit report without the consumer’s initiation of a credit transaction or authorization, as the Third Circuit held below in this case of forgery and fraud—thereby allowing a company to pull a credit report on any person at any time without their participation or consent?