FCRA Compliance

RetainerLogic is designed from the ground up to comply with the Fair Credit Reporting Act (FCRA). This page outlines our compliance measures and your responsibilities as a user.

Our Compliance Framework

RetainerLogic Commitments

  • We maintain an established relationship with consumer reporting agencies
  • We verify permissible purpose certifications for every inquiry
  • We use soft inquiries that do not impact consumer credit scores
  • We maintain required records for 7 years per FCRA requirements
  • We provide tools and templates to support your compliance obligations
  • We do not disclose full credit reports—only risk assessments

Permissible Purpose

Under FCRA Section 604, a consumer reporting agency may furnish a consumer report when there is a permissible purpose. RetainerLogic operates under the permissible purpose for credit transactions:

15 U.S.C. § 1681b(a)(3)(A)

"A consumer reporting agency may furnish a consumer report... to a person which it has reason to believe intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer."

When a law firm defers a portion of fees—allowing a client to pay over time—the firm extends credit to the consumer. This creates a permissible purpose for credit evaluation.

Consumer Consent Requirements

Before any credit inquiry, you must obtain written consent from the consumer. RetainerLogic provides an FCRA-compliant consent form template that includes:

  • Clear identification of the purpose (evaluating creditworthiness for payment terms)
  • Disclosure that it is a soft inquiry (no credit score impact)
  • Consumer signature and date
  • Authorization language meeting FCRA requirements

You must retain signed consent forms for your records. RetainerLogic logs consent attestations but does not store the signed forms—this is your responsibility.

Your Compliance Responsibilities

Before Each Inquiry

  • Obtain valid written consent from the consumer
  • Certify that you have a permissible purpose
  • Verify that the inquiry relates to a credit transaction (deferred fees)

After Receiving Results

  • Use information only for the certified permissible purpose
  • Provide adverse action notices if you take adverse action based on credit information
  • Securely store and dispose of credit information
  • Do not share credit information with unauthorized parties

Adverse Action Notices

Under FCRA Section 615, if you take "adverse action" based in whole or in part on credit information, you must provide notice to the consumer. Adverse action may include:

  • Requiring a higher retainer percentage than you would otherwise require
  • Declining to offer deferred payment terms
  • Offering less favorable payment terms

The adverse action notice must include:

  • Name, address, and phone number of the consumer reporting agency
  • Statement that the agency did not make the decision
  • Consumer's right to obtain a free credit report
  • Consumer's right to dispute accuracy

RetainerLogic provides adverse action notice templates that you can customize for your firm.

Record Retention

FCRA requires certain records to be retained. We recommend:

  • Consumer consent forms: 7 years (your responsibility to maintain)
  • Credit inquiry records: RetainerLogic maintains for 7 years
  • Adverse action notices: 7 years (your responsibility to maintain)
  • Permissible purpose certifications: RetainerLogic maintains for 7 years

Prohibited Uses

Credit information obtained through RetainerLogic may NOT be used for:

  • Employment decisions
  • Insurance underwriting
  • Tenant screening
  • Determining whether to represent a client
  • Setting fee amounts (only payment term structuring is permitted)
  • Any purpose not related to the specific credit transaction

Disputes and Consumer Rights

Consumers have rights under FCRA including the right to:

  • Know what is in their credit file
  • Dispute incomplete or inaccurate information
  • Have inaccurate information corrected
  • Know who has accessed their credit report

If a consumer disputes the accuracy of information, you should direct them to the consumer reporting agency. RetainerLogic will cooperate with any reinvestigation as required by law.

Questions?

For questions about FCRA compliance or our compliance program, contact:

RetainerLogic.ai, LLC
Email: [email protected]

For a detailed legal analysis of FCRA permissible purpose and Bar Association rules, see our Legal Framework page.