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Credit Check Done Without Permission

I know someone who was considering entering into a contract to purchase a house two years from the initiation date of the contract. There was no intention to seek a mortgage through a firm related to owners of the house at this time. Someone related to the home owner conducted a credit check on the individual without permission. What are the ethics involved with this, and should I report this to the company for whom this person works?


There are many reasons a business is able to access a ' credit report. A fairly generic reason is "for any business purpose". This doesn't mean a loan has to be applied for. A landlord may check the credit on a renter. Credit reports are accessed when insurance is applied for. A lender may access a credit report on an existing customer to update their information.

Accessing a person's credit report without a valid reason is a punishable offense. Tell your friend and let him handle it with whomever accessed the credit report. If you are a third party and are not related to the transaction, you have no legal interest and would get very little information.

Published on BankingQuestions.com 11/06/08