We are attempting to collect on a past due loan. Can we pull a credit report to see if there are issues on why they are not making payments and also to verify address?

Yes, but it needs to be a soft pull credit report for portfolio monitoring purposes.

Sorry, but can you tell me what a portfolio monitoring purpose is?

From section 604 of the FCRA:

(3) To a person which it has reason to believe

(A) intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer; or


This section gives you a permissible purpose to pull reports to review existing accounts to see if you want to continue the account with the borrower. Most commonly used for open-end accounts. This does not however give a FI the right to monitor closed-end accounts. If they are pulling reports to monitor closed end accounts then they are in violation of the Act.

https://www.ftc.gov/sites/default/files/...0fcrareport.pdf

Page 13 of the above document:

In a 1999 letter,56 the staff opined on this issue in the context of closed-end credit
transactions. Because the terms of closed-end credit transactions are generally
predetermined and thus may not be changed unilaterally by the creditor, the staff opined
that the creditor in that instance did not have a “review” permissible purpose.. . . . . . . . .
. . . . .. . .. . . the “review” permissible purpose applies only where the creditor has an existing
account relationship with the consumer and uses the report solely to decide whether to modify
the terms of the account. . . . .

The above link did not work for some reason. This one does.

https://www.ftc.gov/sites/default/files/...0fcrareport.pdf