Litigation (Lawsuit) is Not a Permissible Use of a Consumers Credit Reports
August 3rd, 2009. Published under Fraud, Scams. No Comments.
Have you been sued by a third party debt collection law firm? Did they pull your credit report? You may have a case against them for violating the Fair Credit Reporting Act (FCRA). Litigation is not permissible use of a consumers credit report as litigation is not a business to consumer transaction and thus violates the FCRA. In the 1990 Commentary on the FCRA, the Federal Trade Commission (“Commission”) stated that “[t]he possibility that a party may be involved in litigation involving a consumer does not provide a permissible purpose for that party to receive a consumer report on such consumer . . . because litigation is not a ‘business transaction’ involving the consumer.” 16 C.F.R.