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Collection Agency want to pull credit


Elle
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I'm a loan processor and am helping my friend and her husband buy a home. She has a judgement back in 2000 for $2895.00

Now of course she needs to pay it off however the collection agency says she now owes more than $9000 and will not discuss a settlement unless they can pull her credit and get all of her current information. They called it filling out an application. For what I don't know. When questioned further as to why they needed to pull credit they told her because they wanted to see if she was applying for a mortgage. Needless to say,she doesn't have the money and she can not go on the loan with a judgement. I've done a lot of searching but I have never come across anything like this. Any ideas?

Elle

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Evidently the CA does not have permissible purpose or they would have already pulled it. Your friend will need to consent to them pulling it, and that can only turn out badly. Your friend should never give a CA access to their reports; once they have it they can hound them forever. Bottom line is, I would tell your friend to get a lawyer to handle the negotiation, if they really want to negotiate a settlement, as it seems they do. This way it will be in writing.

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Wong Amat Tower Condos

Edited by kevin3344
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oh HELL NO!!! Your friend should not fill out an "application" with the CA.

Why did she even tell them she was trying to buy a home? ... Now they think they have something on her so they probably won't negotiate.

What state did she get the judgment?

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I'm pretty sure the CA does have permissable purpose...they're collecting a debt.

But...I also pretty sure that what they see is blood in the water, and they're circling for the kill. They're going to try to squeeze as much out of this as possible.

Question is, who got the judgement? The CA, or some other creditor. If it was some creditor, call them to see what can be worked out. If its the CA, then chances are the bought the debt...you might be able to fight them off with a "chain of custody" type suit, and even a "poisioning of the credit report" case. You'll probably need a lawyer for this, however.

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In reply; my friend did not say she was trying to buy a home. They said that because she was trying to settle this after 7 years they find most people are just trying to get a satisfaction of judgement so they can purchase a home. They said they wanted to pull credit to check the inquiries and if there were any from a mortgage lender they would be requiring full payment. This seems illegal.

The original creditor was United Finance and is now with a CA. They do need her permision to pull credit and I'm inclined to tell her not to. Unfortunalty closing of her home is coming upon us next week and am not sure how to resolve this by then.

Does anyone know where to find the usery laws in Oregon and where to find out if its legal for the CA to refuse negotiating the debt without first pulling a credit report?

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Nope...sorry. From the FCRA (see link above)..

604. Permissible purposes of consumer reports [15 U.S.C. § 1681b]

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

(1) In response to the order of a court having jurisdiction to issue such an order, or a subpoena issued in connection with proceedings before a Federal grand jury.

(2) In accordance with the written instructions of the consumer to whom it relates.

(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

So, if they're collecting, they have PP.

I think another question though is, is this a CA collecting for the original creditor, or is the debt now with a junk-debt-buyer. If its a JDB, then you might be able to take legal action to chase them away. Otherwise, you're probably going to have pay these people to make them go away. And if they know (or even think) that they're standing in the way of a mortgage, they're gonna play hard ball.

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Don't know if this will work, but...

have your friend contact the court. Pay the judgment and obtain the satisfaction directly from the court, bypassing the plaintiff or this collector. Most likely, the amount will have increased by legally allowed interest charges. But it may be less than what the CA is demanding.

Just a thought...

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