Is running a credit check on a customer usually legal?

In most cases, running a credit check on a customer is indeed a legal practice, but there are specific regulations and conditions that must be adhered to. For a credit check to be performed legally, the customer must provide consent, which means they are acknowledging and agreeing to the process. This is in line with regulations set by laws such as the Fair Credit Reporting Act (FCRA) in the United States, which mandates that credit report providers can only share consumer credit information with entities that have a permissible purpose, which includes obtaining consent from the individual whose credit is being checked.

The notion that it is not legal without consent aligns with the broader understanding of protecting consumer rights. Not obtaining consent (thus running a credit check without informing the customer) would violate those rights and legal frameworks, making the act potentially illegal. Therefore, it's fundamentally crucial to have the customer's permission before proceeding with a credit inquiry. Understanding this process is essential for those in customer service roles, particularly when dealing with financial transactions or credit-related services.