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#917167 - 03/07/08 04:19 PM FCRA Permissible Use
Buwinkle Offline
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Section 604(a)(3) allows a CRA to furnish a consumer report to a person it believes intends to use the information for review or collection of an account. Does this allow a bank to pull credit reports on borrowers of closed end performing loans for the purpose of determining if there is any deterioration in the credit quality of its closed end performing loan portfolio?

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#917200 - 03/07/08 04:28 PM Re: FCRA Permissible Use Buwinkle
Dan Persfull Online
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Dan Persfull
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#917224 - 03/07/08 04:42 PM Re: FCRA Permissible Use Dan Persfull
Marnie Offline
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Dan, am interested in this thread and in your response with "recent discussion", but the link doesn't work. Can you clarify where to look?

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#917241 - 03/07/08 04:49 PM Re: FCRA Permissible Use Marnie
Deena Offline
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Marnie, the link is to a discussion in the private forum. If you haven't been approved to view those threads, that's probably why it won't work for you. If you work for a financial institution, you can contact BOL and request access.
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#917287 - 03/07/08 05:06 PM Re: FCRA Permissible Use Deena
Marnie Offline
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Thanks, didn't think of that!Do work for a bank so will do.

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#917581 - 03/07/08 07:48 PM Re: FCRA Permissible Use Marnie
Dan Persfull Online
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Dan Persfull
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Bloomington, IN
Marine..didn't realize you didn't have access. Here's a couple of my posts copied and pasted;


Although 1681b(a)(3)(A) allows you to pull a report in the collection of an account it does not, IMO, make a "suspicion" that they may be headed for a collection problem a permissible purpose.


Different rules apply for open-end credit vs closed-end credit. See (F)(ii) of the above section.
For closed-end credit you have no need to review the account for continued eligibility.



Whether you are doing a simple "inquiry" or a "more credit" review you still have to have a permissible purpose. And there are few permissible purposes allowing you to pull a report on an already established closed-end credit account.
Your only guise would be possibly under a "marketing" scenario, but then you would have to follow the pre-screening/marketing and opt out requirements.



And then the following FCRA opinion letter:

http://www.ftc.gov/os/statutes/fcra/stinneford.htm
Last edited by Dan Persfull; 03/07/08 07:50 PM.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#917878 - 03/07/08 09:43 PM Re: FCRA Permissible Use Dan Persfull
Buwinkle Offline
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Thanks Dan.

Don't get the connection to the opinion regarding Section 615(a) of the Fair Credit Reporting Act and Section 202.9(f) of Regulation B, implementing the Equal Credit Opportunity Act.

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#917981 - 03/07/08 10:29 PM Re: FCRA Permissible Use Buwinkle
Dan Persfull Online
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Dan Persfull
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Reg. B 202.9(f) allows you to send an AAN required by Reg. B only to the primary applicant.

615(a) requires a FCRA AAN, which is different than the Reg. B AAN, be sent to each consumer whose credit report was used in whole or in part in the adverse action decision.

Now with that said I posted the wrong opinion. This one deals with AAN issue. I got off by one line when I copied the link. I should have posted this opinion:

http://www.ftc.gov/os/statutes/fcra/gowen.shtm


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The opinions expressed are mine and they are not to be taken as legal advice.

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#918191 - 03/10/08 12:12 PM Re: FCRA Permissible Use Dan Persfull
Buwinkle Offline
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Posts: 20
Most excellent Dan.

Thanks again!!

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