Say for example I applied to a bank for a loan of some type. I understand that as part of that application process they will pull a copy of my credit report from one of the “Big Three” reporting agencies. After the bank obtains a copy, how free are they to disseminate that information to other companies? Could they, for example send a photocopy of my credit report to say for example a title company?
…usually by contract.
Also, as soon as they do distribute it - should they disregard their contract which prohibits it - they are now a credit reporting agency and must comply with numerous state and federal regulations - including but not limited to the FCRA - which they are not prepared to do.
It’s a big no-no.
Th Title Agency is at fault if they request it, because they don’t have permissible puepose as outlined in the FCRA.
(FCRA = Fair Credit Reporting Act)
Its difficult enough just to get them to let me look at my own personal credit report. IF they would then the companies who do the reporting would not be saddled with having to provide free reporting to the consumer. The reporting companies think they’ve got this goldmine of information, and now all of a sudden they don’t.
When you recieve a ‘consumer disclosure’ from a CRA (credit reporting agency), said disclosure must be formatted in specific ‘consumer friendly’ way, which has been outlined by the Federal Trade Commission.
When a bank gives out your report to other companies, the companies receiving the report violate the permissable purpose clause.
If a bank hands you a report, you aren’t receiving the consumer friendly report you are entitled to. If said report resulted in adverse action such as lowering your limit or caused a higher interest rate, you are immediately entitled to a consumer reprting agency that provided the report.
If a bank gives out reports to other companies, then they are governed by the complicated FCRA, and that means nothing but trouble for them.
**toysarefun’s **points break down into bitching and moaning about a company and their right to make a profit off of their product. He feels, from his comment, that CRAs don’t have the right to make money from their product.