Attack on FTC Move to Require OK's for Some Credit Checks
American Banker (08/09/00) Vol. 190, No. 2 p.4; Heller, Michele

Banks have begun objecting to the Federal Trade Commission's interpretation of the Fair Credit Reporting Act that says banks cannot review a personal credit report for business owners looking to receive or personally guarantee a commercial loan without getting written permission from the applicant. The American Bankers Association's James McLaughlin says the FTC's nonbinding staff interpretation of the act questions "the current practices of most banks," which include a customary credit check when individual small-business owners or board members sign for a loan.

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