Debt collection agency pulled credit report. Is this legal?
I received an alert on my credit report this morning that states a debt collection agency pulled my credit report. (I should state, I assume they are a debt collection agency based on the research I performed.) I have never received any information from this company stating I owe on an unpaid bill and have not requested an extension of credit from any companies that would accompany this request for my credit report.
Do I have any rights regarding this situation? I am not aware of any outstanding bills, although that possibility may exist.
Thank you in advance
- 1 decade agoFavourite answer
Did you know that collection agencies will seek credit reports for people that it knows have outstanding debts? They pull your report in order to assess to see if you are someone worth going after. If they see you've getting new credit easily and can tell from your report that you have a full time job and are working, they're going to come after you. Case in point...a friend of mine lost his job, and it took him over a year to find a new one. On his credit report which he recently pulled, he saw that over 40 debt collectors had pulled his credit report -- probably all for the same debt!!
I wouldn't be too worried that they have pulled a copy of your credit report. I would be worried if they start adding negative items to your credit report. Typically what happens is this. A collection agency will try to contact you. After 5 days, they then have to send you a letter in the mail. This letter will state that they are trying to collect a debt. At this point, this is where you request debt validation (sample letter here: http://overcomingyourdebt.blogspot.com)./ The debt collection agency has 30 days to verify the debt. If they can't, they have to stop collecting and CANNOT report negative items on your credit report (in theory).
Debt validation is important, and it's a powerful tool and protection. Use it when you can. Remember, it's only effective the first 30 days. After that, debt validation can still be done, but if they've already reported, it becomes trickier to get negatives off your credit report. Failure to validate the debt allows the debt collector to ASSUME the debt is valid, but this does not mean that you accept liability for the debt. The debt collector would still have to prove that in a court of law.
Good luck. I wouldn't worry too much right now. Debt collectors are allowed to pull your credit report.
- redhairedmama75Lv 51 decade ago
As usual littlemissmay does not know what she is talking about. Obviously you DO have an outstanding bill somewhere as collection agencies do not just pull peoples credit information at random. IN fact in order to pull a credit report that would have to have at least some basic information on you. Just because you do not owe this specific company means nothing as debt collection agencies sometimes purchase accounts from other companies.
You owe money and it IS perfectly legal for them to collect on it. They pull your report as a means of finding you. You can not sue.
What are your rights? You have the right to pay the debts that you owe.
- Anonymous1 decade ago
Guess who the collection agents are here?
Collection agents can and do illegally pull credit reports. They may have a target in the same city with the same name, so they will pull both. Just one of many examples.
And if you are a collection agent, then you already know Rule #1...before a collection agent can begin collecting a debt, they MUST notify you of their intention to collect. You did notice the question saying he was never contacted, didn't you?
The final clue us you automatically assume he's guilty and tell him to "pay the bill". Typical BS.
What you need to do is contact the collection agency by certified mail and demand an explanation of why your credit report was pulled. If they do not have a reasonable answer, file a small claims suit for $1000 against them.
- CatDadLv 71 decade ago
It sounds like a new collection agency has purchased an old account of yours....Unfortunately, when they buy the accounts they also get the same rights to your account as the original creditor has...and that includes pulling your credit report. They pulled your credit report to get your contact info...as well as to get a general overview of your credit situation to give them an overview of whether or not you would be a good candidate to pay.
If they start contacting you about the debt...make sure that it is within the statue of limitations for your state before you pay them anything.
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- Anonymous5 years ago
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first off, there is no statute of limitations on any kind of debt. if you dont pay it, it will either go to the law office for a suit against you or it will be considered a charge off and will show up as such on your credit report. That being said, if you dont pay the bill and it goes into collections, they can request a copy of your credit report at any time during the collections process, but usually dont unless the bill is that of a large amount (1000 or more). as for as your credit report, my best advise is as follows. pay the bill! if you dont and it shows up as a charge off, thats just as bad as a bankruptcy. a lot of collection agencies offer settlements where you only pay a certain amount and the rest is waived. that will show up as a settlement in full on your credit report which is not as good as a pay in full, but it beats paying the full balance or not paying it at all.
- 7 years ago
FCRA state that your credit can only be pulled for a specific permissible purpose. If you original creditor does it in order to collect the debt that is permissible. but if they sell that debt to a debt collector the debt collector does not have permissible purpose - because NO-ONE OWES ANYTHING TO A DEBT COLLECTOR!
You don't owe the debt collector for the debt, and they don't have the legal right to pull your credit.
Demand they validate the debt - they CANT! Therefore they don't owe a debt you owe.
- Anonymous1 decade ago
they have the right to check out your credit report as often as they like most places will run your report for a credit card offers that you get in the mail and so on
- Anonymous1 decade ago
You don't "own" the credit bureau's data base - the credit bureau does. Obviously the collection agency has an account involving you.
- littlemissmayLv 41 decade ago
Ive never heard of anything like this happening to anyone. You are not requesting credit or anything so this is illegal. You need to get in contact with the collection agency. You did not sign any forms stating that they could pull your credit. They did something illegal and they should be sued.
- Anonymous4 years ago
thank you for all the answers