Is it legal for a collections company to access my credit report?
kalatraz22 asked:
I got a letter from a collections company saying I needed to contact them or my current credit score, XXX, might be negatively affected. Is that legal?
I understand that having a collections action filed against me will impact my credit score. But I thought that if a company looks up my credit score (like a credit card application), my credit can be negatively affected. So it seems like I might get hit twice here. . . since they quoted my credit score AND apparently have filed a collections claim.
I got a letter from a collections company saying I needed to contact them or my current credit score, XXX, might be negatively affected. Is that legal?
I understand that having a collections action filed against me will impact my credit score. But I thought that if a company looks up my credit score (like a credit card application), my credit can be negatively affected. So it seems like I might get hit twice here. . . since they quoted my credit score AND apparently have filed a collections claim.
December 1st, 2008 at 8:46 pm
If you have a collections company on you in the first place it will hurt your credit, if you are struggling with debt you may want to find a reputable company to represent you and offer you counseling on how to deal with collections companies.
December 3rd, 2008 at 11:48 am
Off Course, but you still have rights.Start by seeking Protection
December 5th, 2008 at 11:14 am
That doesn’t sound like a legitimate tactic for getting you to call them. I would not reply. To answer your question, collection agencies CAN legally access your credit report if its for business purposes. That process of sending you a letter threatening your credit score doesn’t sound right to me. Check out the company and make sure they are legitimate.
December 6th, 2008 at 5:54 am
Yes. Whichever account of yours they were collecting for probably had you sign something when you first opened your account with them stating that they could access your credit report. It’s standard procedure.
December 7th, 2008 at 12:10 pm
yes. They do that. Its part of their job to remind you of your responsibility.
December 9th, 2008 at 6:47 am
They can not access your bureau, but if they file a collection against you, it will show on your bureau which will hurt you. They file it with the bureau company and the bureau company will put it on your credit.
December 11th, 2008 at 2:26 pm
They don’t ACCESS the report. They do the reporting. That not only is legal, it’s how it works.
Thats how credit reports are scored.
December 15th, 2008 at 12:36 am
When a collection agency is “shopping” for bad debts, they are allowed to access reports as a soft inquiry.
When a collection agency purchases the bad debt, they can pull a hard inquiry.
What stinks is that if they are really twisted, (if they own the debt) they will pull a hard inq. once a month (or more) Just to put the pressure on the debtor, or, more than likely, just for grins.