I just found out that a lender pulled a credit report on a customer of the bank who is dead. It was not accidental. They found out the borrower had passed away and wanted to look at the credit report to decide on a plan to workout the loan.

Is pulling a credit report on a dead person in this scenario a "permissable purpose" or does that "die" along with the borrower?

Thank goodness the Red Flag rules aren't in effect yet...can you imagine trying to verify the dead person's "current address" against what is on the credit report?!

I would imagine that the dead fella could care less about his outstanding debts, or how he is going to pay them going forward.

I do not feel your lender had permissable purpose to do so. Let the surviving spouse come to the lender with their current scenario and pull a report on them... the lender has no idea which debts will be satisfied with credit protection, nor even if the surviving spouse or whomever will be responsible for them.

I'll take the opposing position from Jay. I think it does help you to understand the financial position of the estate and to know better when you are told there is, or is not, any money for your debt. You could be first lien of something and want to know what is happening, you could be unsecured and want to know what part of the pie you may see.

I think you're fine. And as was noted, who will really care?

And I see the point where Andy is coming from... interesting view.



I still think it is wrong, but interesting and valid

It might depend on the specific circumstances, but I am not sure what a credit report would tell you not knowing what else was involved in the estate.

Borderline at best IMHO.

Depending on the note's language once the borrower dies the note is generally in default, therefore I think you could rely on 604(a)(3)(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