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#2148275 - 10/02/17 03:10 PM Credit report on delinquent account
Tessie Offline
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Joined: Jan 2006
Posts: 155
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?

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Lending Compliance
#2148276 - 10/02/17 03:24 PM Re: Credit report on delinquent account Tessie
MScarn6942 Offline
Platinum Poster
Joined: Aug 2015
Posts: 756
Land Lacking in Lakes, IL
Yes, but it needs to be a soft pull credit report for portfolio monitoring purposes.
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"Pressure is something you feel when you don't know what you're doing" - Peyton Manning

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#2148289 - 10/02/17 04:57 PM Re: Credit report on delinquent account Tessie
Tessie Offline
100 Club
Joined: Jan 2006
Posts: 155
Sorry, but can you tell me what a portfolio monitoring purpose is?

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#2148294 - 10/02/17 05:09 PM Re: Credit report on delinquent account Tessie
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,844
Bloomington, IN
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. . . . .
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The opinions expressed are mine and they are not to be taken as legal advice.

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#2148295 - 10/02/17 05:12 PM Re: Credit report on delinquent account Tessie
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,844
Bloomington, IN
The above link did not work for some reason. This one does.

https://www.ftc.gov/sites/default/files/...0fcrareport.pdf
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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