Can a company check credit without authorization?
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Can a company check credit without authorization?
I received notification of a new inquiry on my credit. After looking, it was from a company that I have a charged off loan from. I have not authorized a recent inquiry. I opened the account 5 years ago, so that would have been the only time I have authorized them to check credit. Are they able to check my credit without my authorization?
Asked on August 15, 2011 Missouri
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Companies are allowed to search and check a person's credit rating and status without first obtaining authorization from the person that the inquiry is about. Such searches and inquiries are done all the time and the information obtained is from public records and postings by credit reporting agencies and companies.
The purpose of the inquiry is to assist in decsions for extending or revoking credit, marketing purposes, or simply to update a company's data base for a given customer.
These inquries are part of the custom and practice of the credit industry. If you are not pleased about this inquiry without your authorization, you should write the company about it requesting reasons for it.
Good luck.
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