Jump to content

credit inquiry by collection company, can they do that?


dragon6473
 Share

Recommended Posts

This is quite long but I have to tell you the story...

I pulled all 3 reports yesterday and noticed that I had an inquiry by a collection company that was posted on Oct 23rd. I called Transunion regarding this unauthorized inquiry and they told me they don't help consumer to dispute/investigate inquiry and I have to call the collection agency myself and tell them to write in to remove or phone. Well, I tried that today, (collection agency)she hung up the phone on me when I told her that the 7 year statute of limitation is up.

This collection company had gave me HELL for the whole last year dealing with all 3 CBA. They bought an old debt (last date of activity was 11/97) from another collection company last July and decided to post all the 3 credit bureaus. What's worse, the new collection company said my date of delinquency was 09/98 so they are not going to remove the inquiry. I have all my credit reports from years even with the original creditor and all I could see was 11/97, no mentioned about delinquency till this new collection company(a big one and publicly listed) said so.

So, I had disputed since last October with all 3 CBA and the negative item was deleted though it took 4 months myself to get Equifax to look at the correct data instead of just looking at the data provided by the new collection company.

So now, after almost 1 year, the collection company decided to look at my Transunion credit report and had an inquiry. I want to know if that is a violation of FRCA? Do they have any right to do that? What about Transunion allowing the collection company to look into my credit report? How could I get it off?I have written a letter to Transunion and faxed in for reasons this happened.

I need some help, how could I get the inquiry removed? Can I sue?

Any advice? Thank you.

Link to comment
Share on other sites

Sorry but you're on the wrong track here. A collection DOES give them permissable purpose to pull your reports and the 7 year reporting period has NOTHING to do with the inquires. They can try to collect until hell freezes over.

The DOLA was 11/97 as you say, then the reporting period would start to run on 12/97 when you went delinquent and never again go the account caught up. That means that they can legally report until December 2004 !!

I'm gonna guess you're dealing with NCO - from your description of them.

Bottom line - the CA has permissable purpose, in that respect they've done nothing illegal. IF they have re-aged the debt, THAT is illegal.

Link to comment
Share on other sites

LadynRed:

Thank you for taking the time to reply. I really appreciate it. Thanks for clearing up the confusion for me. It's Asset Acceptance - CA.

The DOLA was 11/97 as you say, then the reporting period would start to run on 12/97 when you went delinquent and never again go the account caught up. That means that they can legally report until December 2004!!

Question based on your answer above - (why would Asset used 09/98 as the delinquency date from the previous collection agency though? All they have provided me(Asset) is a computer print out form, with dates open 10/96, DOLA 11/97(OC), and delinquency 09/98(CA), not a receipt of payment on 09/98 from the previous collection or something).

Bottom line - the CA has permissable purpose, in that respect they've done nothing illegal. IF they have re-aged the debt, THAT is illegal.

Question based on your answer above - When Asset first reported to my Transunion credit report on 11/03, this is all the data from my report.

-Collection Account/Placed for Collection

-Updated 09/03

-Placed 07/03

Status as 09/03- collection account

Does any info indicated it was re-aging the debt?

So even there's no collection account on my reports, Asset can still have a credit inquiry on my report?

Thanks for your help again.

Link to comment
Share on other sites

Question based on your answer above - (why would Asset used 09/98 as the delinquency date from the previous collection agency though? All they have provided me(Asset) is a computer print out form, with dates open 10/96, DOLA 11/97(OC), and delinquency 09/98(CA), not a receipt of payment on 09/98 from the previous collection or something).

Simply.. ASSet is SLIME ! The DOLA of 11/97 from the OC is what is important here. That means the account went delinquent 12/97 and ASSet can NOT change that date, if they do anything to make it look later, they are illegally re-aging the debt - something ASSet does on a regular basis.

Question based on your answer above - When Asset first reported to my Transunion credit report on 11/03, this is all the data from my report.

-Collection Account/Placed for Collection

-Updated 09/03

-Placed 07/03

Status as 09/03- collection account

Does any info indicated it was re-aging the debt?

No, re-aging is not evident with those entries. They got the account 7/03, they updated it with the CRA's on 9/03 and the status as of that date is "collection".

So even there's no collection account on my reports, Asset can still have a credit inquiry on my report?

Well, they DID report, and it doesn't matter if they do anyway. Collection gives them permissable purpose.

Link to comment
Share on other sites

I still don't think Asset has permissible purposes. I have copied and paste a staff opinion letter from FTC dated 1999. I also posted on lawyers.com and this is what I get:

(1) The FCRA lists the specific reasons the a company or individual must have in order to meet the "permissable purpose" requirements of the law. If there is an ongoing account, they have PP. If no accounts exists, they do not.

(2) This responds to your letters concerning whether the Fair Credit Reporting Act ("FCRA") permits a party to obtain a credit report on a consumer under certain circumstances.

1. How long after a consumer terminates an account does a previous credit card issuer or lender have access to the consumer's credit file?

Section 604(a)(3)(A) of the FCRA provides a consumer reporting agency ("CRA," usually a credit bureau) with a permissible purpose to provide a report on a consumer to a person who "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."(1) Once an account is closed because the consumer has paid the debt in full (and also, in the case of an open-end account such as a credit card account, notified the creditor to close the account), it is our view that no permissible purpose exists for a CRA to provide file information on a consumer to the creditor. Because there no longer exists any account to "review" and the consumer is not applying for credit, the FCRA provides no permissible purpose for the creditor to receive a consumer report from a CRA. I enclose a recent staff opinion letter (Gowen, 04/29/99) that discusses this issue in more detail.

2. Is a permissible purpose for obtaining consumer credit reports for the sole purpose of determining possible debt by a collection agency for the purpose of soliciting collection business from creditors?

No. You report that a debt collector and a major credit bureau assert that the collector has a "legitimate business need" to obtain a random selection of credit histories for the purpose of determining overdue accounts and then contacting the creditors on the account to solicit collection business. Section 604(a)(3)(F)(ii) does provide a permissible purpose to a party that "has a legitimate business need for the information to review an account to determine whether the consumer continues to meet the terms of the account." In our view, this section authorizes a provider of an existing account (e.g., a bank that has established a checking account with the consumer) to obtain a report on the individual. In the scenario you described, the debt collector has no "account" to "review" when it orders a credit report (in fact, no "account" may exist for some consumers), but instead seeks to randomly examine credit files in order to solicit collection business from creditors. The collector is not authorized to obtain (nor a CRA to furnish) a consumer report for that purpose. The entire focus of Section 604 is to protect the confidentiality of consumers' personal data in the files of CRAs, by restricting access to parties who have a specific need for it.(2) If a third party such as a debt collector can review the consumer's file to see if there exists any account that the creditor has reported as delinquent, the section has totally failed its goal.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.