I know we've beat permissible purpose to death on re-using an existing credit report on a loan, including the refinance of the same loan or a new loan say within 6 months of previously pulling a report.
Permissible purpose always speaks to obtaining a credit report. It doesn't speak to using an existing report on a new request made by the borrower which would otherwise qualify under 'permissible' purpose, other than the words "and no other". I know in my head this is the problem...but again, it makes no real logical sense except where pre-screening, marketing, etc come into play.
It's nearly impossible to explain to lending staff that when they are making a new loan 30 days form a prior loan why you really need to pull new credit every time. Sometimes, it involves an individual for business purpose, but because they are personnally liable, you pull a consumer report but may have multiple loans per month to that borrower. It upsets the customer as well.
In reading the "40 Years" and in reading Gowan and FCRA I cannot make the actual connect to using the existing report...only the fact you have to have a PP to have a report issued...how do you justify that this is truly the intention of the FCRA?
BTW, I'm waiting to look at our contract with the CB to see what it specifies, or if it is specific to this issue...but in the meantime...
I really have a tough time with this, and always have...if I can't convince myself that this is what FCRA actually speaks to, I have a hard time convincing others!
Last edited by RR Joker; 12/01/11 06:28 PM.
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My opinion only. Not legal advice.
Say you'll haunt me - Stone Sour