Consumer Law

Legal Uses of a Credit Report

By M. Stan Herring

The Consumerist has posted an article that highlights what your credit report can be (legally) used for. Some things your credit report can be used to determine are:

-Applications for credit, insurance, and rentals for personal, family or household purposes.
? Employment, which includes hiring, promotion, reassignment or retention. A CRA may not release a credit report for employment decisions without consent.
? Court orders, including grand jury subpoenas.
? "Legitimate" business needs in transactions initiated by the consumer for personal, family, or household purposes. (litigation is not legitimate by 3rd parties)
? Account review. Periodically, banks and other companies review credit files to determine whether they wish to retain the individual as a customer.
? Licensing (professional).
? Child support payment determinations.
? Law enforcement access: Government agencies with authority to investigate terrorism and counterintelligence have secret access to credit reports.

However, debt collectors don't legally have the power to false information on your credit reports. Such behavior is prohibited by the Fair Credit Reporting Act.

If you have had issues with how your credit report has been used, or problems with debt collectors, feel free to contact us.

Full post as published by Alabama Consumer Blog on November 03, 2009 (boomark / email).