Final answer:
Typically, to access a consumer report for someone who is not responsible for repaying a loan, the request must adhere to permissible legal purposes, and may require the individual's consent. Within the loan process, banks use cosigners and collateral as reassurances against borrower default.
Step-by-step explanation:
To obtain a consumer report on an individual not personally liable for loan repayment, consent must typically be obtained from the individual, unless the request falls under a permissible purpose as defined by relevant law, such as the Fair Credit Reporting Act (FCRA) in the United States. These permissible purposes might include the intent to extend credit, collect a debt, underwrite insurance, or for certain employment considerations, among others. The information provider's request would need to fit within these defined purposes to access a consumer report without the consumer's direct consent.
In the context of obtaining a loan, banks and other financial institutions gather information about a prospective borrower to assess their creditworthiness. This includes a review of income sources and past borrowing history. Additional reassurances for the bank might include the requirement of a cosigner, who is a person or entity willing to take on the legal obligation to repay the loan if the original borrower fails to do so. Alternatively, a borrower might provide collateral, which are assets that the bank can seize and sell to recoup the loan amount in case of default.