When must a signed disclosure under the Fair Credit Reporting Act be obtained?

A signed disclosure under the Fair Credit Reporting Act must be obtained at the time of sale. This requirement ensures that consumers are informed about the gathering of their credit and personal information before they enter into an agreement for an insurance policy. By doing this at the time of sale, insurers provide transparency regarding how an individual's credit history might be used in the underwriting process and its impact on their insurance premiums.

Obtaining the disclosure during the application process is typically a part of the overall procedure, but the critical point is that it must be clearly communicated when the consumer is making the decision to purchase the insurance, ensuring consent is granted before the insurer accesses credit reports or other financial data. The insured should have clarity on their rights and how their information will affect their insurance coverage, which aligns with the intent of the Fair Credit Reporting Act to promote consumer awareness and protection.