Can a company check credit without authorization?

UPDATED: Aug 15, 2011

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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


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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