Common use of Misuse of Information Clause in Contracts

Misuse of Information. The FCRA prohibits the obtaining of information from a consumer reporting agency for an impermissible purpose. Further, those involved in such improper requesting may be subject to criminal penalties of imprisonment up to two years and/or a fine of $5,000 for each offense. 15 U.S.C. § 1681q. However, such punishments are subject to change as the FCRA is amended. Further the DPPA prohibits obtaining information under false pretenses and restricts the resale or redisclosure of personal information contained in the state motor vehicle records. A violation of the DPPA may also result in criminal penalties. 18 U.S.C. § 2733(a). If a Client or one of its employees misrepresents to Private Eyes Screening the reason for a report or requests a report for an impermissible purpose, Private Eyes Screening may terminate service without notice in addition to other remedies available to Private Eyes Screening. Client understand that its misuse of or improper request for information may have a direct impact upon Private Eyes Screening and may cause it to be unable to obtain information for any of its clients resulting in substantial damages for which Client would be liable.