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.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.