No permissible purpose for request for report
Although your potential employer or landlord or creditor may obtain a credit report on you, in order to see if they’d like to do business with you, parties may only request consumer or credit reports if they have a valid reason to do so. The complaint for this class action alleges that Parrent Smith Investigations did not have a valid reason for obtaining information on the plaintiff in this case when they pulled his credit report.
Strangers can’t simply go pull up your credit report; they have to be authorized and/or be doing it for one of a limited number of permissible purposes—so says the Fair Credit Reporting Act (FCRA). The complaint for this class action claims that Nationstar Mortgage pulled Plaintiff Jeffrey Helbling’s credit report without his knowledge or authorization, and without any permissible reason for doing so. Nationstar had solicited Helbling for a mortgage, but Helbling had decided he did not want to apply.
Bank of America has settled a class action alleging that it violated the Fair Credit Reporting Act (FCRA) by accessing customer credit reports to conduct Account Review Inquiries after their relationships with the company had ended.
The complaint for this class action alleges that Discover Financial Services requested plaintiff Daniel McHugh’s credit report from Experian on several occasions, even though McHugh no longer had an account with the company. Among other things, the FCRA specifies the purposes for which a consumer report may be provided to a third party. A recent case in the US District Court for Nevada concluded that, although it is permissible for lenders to request consumer reports to determine whether a consumer continues to meet the terms of the account, “[t]he operative word in this provision is ‘continues,’” so that once the consumer has terminated the relationship with the lender, the lender is no longer permitted to access the consumer’s credit report.