Can we pull a credit report for a guarantor on a commercial without written consent? We do not always get the bank financial statement form from our cusomers - sometimes the statements are forwarded by accountants and do not have the consent statement. I am thinking we could classify their guarantee of a business loan as a legitimate business purpose but just want to clarify. Thanks!

I think you have a legitimate business purpose. But I would institute procedures to get written consent anyway.

The FTC clarified that if the individual is going to be personally liabile on the credit transaction, you have a permissible purposes to pull a report. No written consent is necessary. On the other hand, if you want to pull credit on officers or owners of a company, but they are not going to be personally liable, written permission would be required.

Somewhere I read that if there is a guarantor on a consumer loan who is liable on the obligation (indirectly - through the guarantee) the credit performance is reported under the primary borrowers AND the guarantor. However, I can't find that post and I can't find that in the reg. Randy's post is not directly on point, but what do you think?

Pulling credit reports and reporting credit history are two different things. If your CRA has provisions to report on consumer guarantors - you are free to report them.

Thanks Randy!

related to this thread:
over 30 day dq payment history on consumer loan with a guarantor, guarantor gets a "payment due notice" same as the borrower. Guarantor wants dq reporting removed from guarantor credit bureau. Lender says we cannot report to CRA because a payment notice is not a demand for payment from the guarantor, we have been reporting on both, which is correct?

Depending on the wording of you guaranty, there is usually no demand required for the guarantor to be liable on the debt or for the payment. That is why they sign the notice to co-signer that says:

"The bank can collect this debt from you without first trying to collect from the borrower. The bank can use the same collection methods against you that can be used against the borrower, such as suing you, garnishing your wages, etc. If this debt is ever in default, that fact may become a part of your credit record."

thank you