The agreement requires clients to acknowledge that Plaid Output is not a consumer report under the FCRA and that clients warrant they will not use Output as or as part of a consumer report or in any manner that would cause Output to be deemed a consumer report.
This analysis describes what Plaid's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This provision requires clients to make an affirmative legal representation regarding the nature of their use of Plaid Output relative to FCRA definitions. A client whose use case could be characterized as involving consumer report data under the FCRA faces potential regulatory exposure if this representation proves inaccurate, in addition to contractual breach.
Interpretive note: Whether Plaid Output constitutes a consumer report under the FCRA in a specific use case is a legal determination that depends on facts beyond the document text and may vary by application type and regulatory interpretation.
This clause establishes that clients must represent and warrant they will not use Plaid Output as or in a consumer report under the FCRA, and that this obligation extends to preventing third parties from doing so. Clients whose applications involve credit-related or eligibility determinations should evaluate this representation carefully before accepting these terms.
Cross-platform context
See how other platforms handle FCRA Non-Consumer-Report Representation and similar clauses.
Compare across platforms →"Client acknowledges and agrees that Plaid is neither a "consumer reporting agency" nor a "furnisher" of information to consumer reporting agencies under the Fair Credit Reporting Act ("FCRA") and the Output is not a "consumer report" under the FCRA and cannot be used as or in such. Client represents and warrants that it will not, and will not permit or enable any third-party to, use the Services (including Output) as a or as part of a "consumer report" as that term is defined in the FCRA or otherwise use the Services (including Output) such that the Services (including Output) would be deemed "consumer reports" under the FCRA.Excerpt from Plaid's Terms of Use
REGULATORY LANDSCAPE: The Fair Credit Reporting Act, enforced by the FTC and CFPB, defines consumer reports and the obligations of consumer reporting agencies.
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This provision requires clients to make an affirmative legal representation regarding the nature of their use of Plaid Output relative to FCRA definitions. A client whose use case could be characterized as involving consumer report data under the FCRA faces potential regulatory exposure if this representation proves inaccurate, in addition to contractual breach.
This clause establishes that clients must represent and warrant they will not use Plaid Output as or in a consumer report under the FCRA, and that this obligation extends to preventing third parties from doing so. Clients whose applications involve credit-related or eligibility determinations should evaluate this representation carefully before accepting these terms.
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