Is it legal for a creditor to continue to run your credit report?
November 2nd, 2008
TikaP asked:
I had a creditor to take me to magistrate court on an unpaid furniture debt. After some years later, they garnished my wages. I left that job and found a new one. Since that time (about 7 years now), they have been continuously pulling my credit report. When they do, it shows as a hard inquiry which lowers my score. Is this legal?
I had a creditor to take me to magistrate court on an unpaid furniture debt. After some years later, they garnished my wages. I left that job and found a new one. Since that time (about 7 years now), they have been continuously pulling my credit report. When they do, it shows as a hard inquiry which lowers my score. Is this legal?
Yes. If they want to pay for the report and have a legitimate reason, there is no reason they can’t.
If you still owe them money then yes they can because they have what the law calls permissible purpose.
In other words, you left the job before the garnishment paid off your debt. In that case, you still owe them and that entitles them to run your credit.
You need to get a current copy of your credit report. Does it show that you still owe money to the furniture company? If so, pay off that balance or contact the furniture company so they can clear up your unpaid balance.
Most city have a Consumer Credit Bureau and you should contact them. Go on line to the Better Business Bureau and file a complaint with them.
Call a consumer rights attorney. Many collection agencies have been successfully sued for this. They can’t just keep pulling your report constantly, even if they do have a “legitimate” reason. They know this destroys your credit and that is why they do it.