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Credit Scores for Monitoring/Tracking Purposes

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I am looking for regulation that allows a creditor to obtain credit scores for existing customers to use for monitoring and tracking purposes, or restricts such purpose. For example, quarterly tracking of a customer's credit score to detect any deterioration that may also then be used for adverse action on a consumer line of credit such as suspending the line. Another example is to track improvement of credit scores where the creditor has granted consumer a loan for the purposes of credit repair or establishing a credit history.

Reviewing open end credit to determine whether you want to continue the line, increase it, or make any other changes is permissible - see below. Just getting scores because you are curious, as in your second example - I doubt that you can find a permissible purpose for that one.

Sec. 604. Permissible purposes of consumer reports

(a) In general. Subject to subsection (c), any consumer reporting agency may furnish a consumer report under the following circumstances and no other:

(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

First published on 03/19/2017

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