Credit Reports
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A collection agency just pulled my credit bureau report for a cc debt that is 16 years old. The SOL has expired and the debt has been off my credit report for years. So, is it legal for this 3rd party collection agency to access to my credit report?
Believe it or not the answer is yes.
Although the debt has
expired, this only prevents collectors from using the courts to
enforce the collection of the debt. They still have the right to
try and collect old debts; even 16 year old debts.
This also means they have a "legitimate business reason" to pull your report.
Now, protect yourself by ensuring this debt does not end up on
your credit reports again.
Many collectors report old debts to credit
bureaus as if they are a new debt. Credit bureaus don't bother
checking the validity of the report because the FCRA says the
person or agency reporting the debt must ensure its accuracy.
If it shows up, be prepared to dispute the item right away using
the information on my free site here...
Fair Credit Reporting.com
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Can debt collectors legally request copies of my credit reports?
Yes, debt collectors can legally check credit reports!
When you sign credit agreements such as mortgages, credit cards, auto loans and so forth, you also agree to allow the creditor (and its designated representatives) to pull credit reports on you anytime they feel it's necessary.
This means they can pull your report periodically and most do. Some pull reports monthly, others quarterly and some only annually.
Two very common reasons for pulling credit reports are late payments and collection actions. In the case of late payments on credit cards, you can expect your creditor to not only pull your credit report, you can expect them to raise your interest rate. This happens thousands of times a day!
When your past due account is sent to collections, so does the right to pull your credit report. Thus, according to the Fair Credit Reporting Act, collectors have a legitimate business reason to review your credit report.
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Where can I find information about my credit reports and improving my score?
Please visit my free site here...
Fair Credit Reporting.com
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