Who Has Access to Your Credit Report And Why? – Advice

Who Has Access to Your Credit Report And Why? There are a wide variety of different misconceptions about your credit report that should be cleared up moving forward. Many people are under the mistaken assumption that any business can get your credit report with little to no hassle. In reality, there are only a few specific types of entities that can get this all important document thanks to the Fair Credit Reporting Act and various laws in the state where you live.


Creditors: Both Current and Future

As a general rule of thumb, any time you’re borrowing money from a business or other type of financial institution, it’s safe to assume that this entity can access your credit history under the law. Whenever you apply for a new credit card, go to your bank to take out a loan, apply for a mortgage on a house, try to buy a new car and engage in any other similar type of activity, the business that you’re working with will be able to get and view your credit report. This is something you can locate on your credit report under “inquiries”. All inquiries made by businesses or financial institutions are referred to as hard inquiries and in most cases will lower your credit score by a few point and stay on your credit report for a minimum of two years.


Utility Providers

While utility providers like your electricity or gas company can view your credit report, the law is very specific with regards to what they’re able to do with that information. Many states deny a utility provider the ability to turn down providing a person with these types of essential services, even if they have a worse than average credit history or if you’re someone in need of credit repair.


Insurance Companies

Insurance companies are another example of a type of company that can view your credit report and credit history with ease. There are a few specific rules that must be followed, however. An insurance company cannot receive a credit report that has information about your medical history unless you specifically give them permission to. Also, if you’re applying for a life insurance policy that has a value of over $150,000, the credit report that the insurance provider will get will have more information on it that other types of businesses wouldn’t necessarily have access to. The more negative information, such as late payments, maxed out credit cards, derogatory accounts or excessive inquiries, and as a result the lower your credit score, the more you will have to pay for insurance, whether it’s homeowners, life or auto insurance. Each state however, has different laws when it comes to insurance companies using your credit as a mean to figure out the premium you’d pay. Check your state’s laws in order to find out whether your insurance company has access to your credit, or is allowed to use it against you.


Your Employer

Finally, any type of employer that you have a relationship with can order and view your credit report at just about any time they’d like. Employers often look at a person’s credit report to learn more about them that they wouldn’t be able to find out in an interview – like how they are with money or if they’re behind on their bills. Many employers also look at a credit report as a statement of integrity to a certain extent. An existing employer can also use your credit report as a guide to help them determine if you’re the type of person who deserves a raise or a promotion, for example. Recently though, New York City council banned credit checks for most jobs, not in the financial industry, as did the following states: Nevada, California, Connecticut, Hawaii, Illinois, Maryland, Oregon, Vermont, and Washington. The idea behind this is that the information contained in a credit report doesn’t necessarily say much about the persons ability to perform at work and in many cases can lead to discrimination among low-income or financially-challenged individuals.


Debt Collectors

Debt collectors are another group of individuals who can easily access your credit report and view it in detail should the need arise. Under the Fair Credit Reporting Act, debt collectors can use credit reports to do everything from locate a customer’s current whereabouts to look at the way these people handle their finances over time. They can use your credit report in order to locate you and try to collect money or to find out whether you are behind on your other debts as well. Either way this does not work in your favor, because most of the times, the methods that collection agencies use to collect from you are not the most consumer friendly.

For additional information on who has access to your credit report and why, as well as credit advice or a comprehensive review of your credit report, feel free to contact our office at 617-265-7900 or schedule a free consultation below.

What Exactly Is A Charge-Off?

Debt Collectors Can’t Pay Their Own Debt

Debt Collectors Can't Pay Their Own DebtWhat happens if you miss a payment? Default on a loan? Can no longer afford to make the payments required?

Simple – you’re taken to task. The bill can go to collections, debt collectors can come after you and the mishap will be reflected in a negative credit score, forcing you to put debt management and credit repair plans into place to save face. In more dire situations, you might have to declare bankruptcy or seize some of your assets.

Yes, not being able to pay off debt according to the policy you originally agreed on can have dire consequences for your credit score and overall finances. But what happens when debt collectors can’t pay off their own debt? We ask that in lieu of two recent incidents where debt collection agencies have been handed hefty fines that they can’t pay, yet are allowed to remain in business. Here’s a closer look:

  • RBT Enterprises was handed a $4 million fine from the Federal Trade Commission for a series of deceptive collection practices that are believed to have cost consumers over $1.3 in unethical fees. RBT Enterprises can’t pony up the $4 million, but the FTC is allowing it to stay in business, pending it pays a $100,000 fee to suspend the judgment and the owner turns over his assets. The FTC is also allowing RBT to stay in business pending suspension of its unethical collection practices.
  • The second example involves ACE Cash Express, a payday advance loan company. The Consumer Financial Protection Bureau (CFPB) alleges that ACE used illegal tactics to force overdue borrowers into taking out more loans. As a result, the CFPB is ordering ACE to pony up $10 million – $5 million in customer refunds and another $5 million in penalties – to make amends, as well as discontinue their illegal tactics.

It seems a little odd and unfair that unethical debt collectors are allowed to stay in business after breaking so many rules and are given leeway when they can’t pay up as a result of their actions, especially when individuals faced with similar financial issues are judged so harshly and may have to spend years following a series of credit tips to repair credit in order to become a “good” borrower again.

But the aforementioned examples should highlight how careful you should be if collectors are coming after you. Remember, debt collectors can’t lie to you – that’s illegal. But apparently if they do lie and deceive consumers, they can still stay in business after a smack on the wrist…

For additional information on how to deal with debt collectors, please contact our office at 617-265-7900, or request a free consultation below.

Can a charged-off debt still be collected? – Q&A

People call and ask us this question when attempting to repair their credit. The answer is i simply….YES.

  • A creditor still has the right to collect on a debt after they have charged the debt off.
  • Most installment loan debts will be charged off 120 days after non payment.
  • Most other debts will be charge off 6 months after non-payment.
  • The IRS allows a creditor to take the charge off as a tax deduction against profits but contrary to popular belief the creditor can continue to collect the debt up to the specific statutes of limitations (varies state by state).

Here is a definition of a charge-off. Great info.

For more information on Credit Repair and how to properly deal with a charge off you and contact our company Toll Free at 877.842.5215 or feel free to request a FREE Credit Repair Consultation online.


Nikitas Tsoukalis, President