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Time limit for suing illegal credit inquiry?


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I have another question.

I had a credit one bank account and I closed the account Dec. 29 or january 1. I see on my report that credit one bank accessed my report january 30. Are they allowed to do this? It was a soft pull but they had no reason looking at my report I owed them no money and infact they mailed me a check for the 4.25 credit on my account.

Can i sue them for violation of my privacy or something.

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There is no absolute prohibition against account reviews on closed accounts; cases are examined on an individual basis in court. If you had a dispute open about that account, generally they do have permissible purpose to examine how their tradeline is reporting.

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I had no dispute. I just close the account because they are expensive and so so sub prime.

There's no absolute prohibition for them continuing to pull ARs. There is case law on both sides of the fence. Levine v. WFNNB is one of them (437 F.3d 1118).

When Structure requested Levine's credit report, it informed Experian that the request was for "account review" purposes. While FCRA permits creditors to acquire a customer's credit report for "account review" purposes, the statute does not explicitly state whether this includes the review of accounts that have been paid in full and closed. See id. § 1681b. The statute contains overlapping language in two provisions: Section 1681b(a)(3)(A) permits

the sale of a credit report to a creditor who "intends to use the information in connection with a credit transaction involving the consumer on whom the information is furnished and involving the extension of credit to, or review or collection of an account of, the consumer." Section 1681b(a)(3)(F)(ii) permits the sale of a credit report to a creditor in order to "review an account to determine whether the consumer continues to meet the terms of the account."

There is a difference in opinion on whether the ambiguous language in FCRA contains an absolute prohibition against the sale of credit reports to former creditors whose accounts are closed and paid in full. Compare Wilting v. Progressive County Mut. Ins. Co., 227 F.3d 474, 476 (5th Cir.2000) (per curiam) ("[N]either [FCRA] nor the FTC's commentary on [FCRA] suggests that a report may only be permissibly obtained during particular points in the parties' relationship."), with Letter from Clarke W. Brinckerhoff, Federal Trade Commission, to Kenneth J. Benner, American Council on Consumer Awareness (Aug. 30, 1999) ("Once an account is closed because the consumer has paid the debt in full . . . it is our view that no permissible purpose exists for a [consumer reporting agency] to provide file information . . . 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 [the agency]."). Citing 15 U.S.C. § 1681s-2(a)(2), Experian argues that a former creditor has a duty under FCRA to provide accurate information to the consumer reporting agency and that a request for a credit report is a permissible way to comply with this duty. Zeller v. Samia, 758 F.Supp. 775, 781 (D.Mass.1991) (creditor permissibly obtained plaintiff's consumer credit report as part of effort to verify that information had been correctly recorded). On the other hand, Levine argues that the duty to report accurate information is not coextensive with the creditor's right to purchase a credit report and that there are lawful and less invasive methods to confirm that proper credit information has been reported to the agency. He contends that § 1681b(a)(3)(A) should apply either when an account is being created or has gone into collection and that § 1681b(a)(3)(F)(ii) should apply when the account is open and active. Otherwise, Levine argues, § 1681b(a)(3)(F)(ii) becomes superfluous.

In the absence of discovery and a more fully developed record, we reserve judgment on whether there is an absolute prohibition against such requests by former creditors for accounts that are closed and paid in full.

(emphasis added)

This ruling was issued in 2006, fwiw.

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