Question

Which of the following is a permissible reason for an institution to request consumer reports?

A) Solely for marketing purposes.
B) To assess creditworthiness for loan approval.
C) To determine eligibility for job applicants.
D) To collect information on family members.

Answer 1

The permissible reason for an institution to request consumer reports is to assess creditworthiness for loan approval.

Step-by-step explanation:

The permissible reason for an institution to request consumer reports is to assess creditworthiness for loan approval. This is because when a bank or financial institution is considering approving a loan, they need to determine the borrower's creditworthiness and evaluate their ability to repay the loan. By reviewing the consumer reports, such as credit scores and credit history, the institution can make an informed decision about whether or not to approve the loan.