As anyone who has applied for a job, an apartment, or a loan soon discovers, a person’s credit report is an important and valuable tool that can be used for many different purposes. Having poor credit can make it difficult to do many of the necessary things pertaining to daily life. Credit reports also contain highly personal and confidential information. For that reason, the Fair Credit Reporting Act prohibits people from pulling another person’s report unless it is for a valid reason.
7 Ways Someone Can Violate the Fair Credit Reporting Act by Pulling Your Credit Report Without Cause
For someone to pull your credit report without violating the law, he or she must have a permissible purpose. Examples of purposes that are not permissible including the following:
- Your employer pulled your credit report without first obtaining your permission.
- A credit card company pulled your credit report when you were not an obligor on the account. For example, you may have been an authorized user, but not an obligor. In these cases, the credit card company is not allowed to pull your credit report without your permission.
- Your landlord pulled your credit report in an attempt to collect past due rent. Your landlord can only pull your report without your permission if a court has issued a judgment against you.
- A creditor pulled your credit report while in the process of pursuing a lawsuit against you involving a non-credit account or for an involuntary debt. For example, if you are being sued over breach of a real estate purchase agreement, the creditor may pull the report in an attempt to see if you have any assets to collect against. However, doing so is impermissible without your consent.
- A creditor pulls your credit report with regard to debt that was discharged in a bankruptcy case.
- A tax collector pulls your credit report without your permission. This is only permissible if you already have a payment agreement in place, or if the information in your report was subpoenaed.
- A person pulls your credit report in order to use the information as evidence against you in a divorce, criminal, personal injury, or other non-credit lawsuit.
If your rights under the Fair Credit Reporting Act were violated, we strongly encourage you to contact us today at 804-282-7900 for guidance.