We originated an installment loan in 2016 secured by stock owned by our borrower's mother. The mother signed a third party pledge agreement to allow the bank to take it as collateral. This week our borrower has asked if we would be willing to release the collateral because they need to cash in the stock to pay for the mother's nursing home bills. Lender wants to pull credit to see if the borrower qualifies for unsecured credit. Would this be a permissible purpose? Could we use the account review provision to pull a new credit report?

Yes - you have a new request for unsecured credit - regardless of how you would accomplish that, such as just releasing the collateral on the current loan.

Thank you!