PERMISSIBLE PURPOSE

TryingVeryHard · ‎11-11-2007

If there is a debt and it has been verified and transferred or sold to a CA, does the CA get PP to pull credit report?

I am really confuse with this issue. All along, I though that the CA has permissible purpose to pull credit report.

Edge v. Professional Claims Bureau states:

At the time that Professional had the “social search” conducted to obtain Plaintiff’s address, it had been referred a debt for collection, guaranteed by Plaintiff, from North Shore Hospital. The referral of that debt gave Professional a permissible purpose for obtaining the credit information pursuant to 15 U.S.C. § 1681b. Specifically, Professional sought the information in the collection of a credit transaction involving Plaintiff. This is a clearly permissible purpose under Section 1681b(3)(A). The existence of this permissible purpose constitutes a complete defense to the claim that the information was obtained under false pretenses under Section 1681n(b) and therefore entitles Professional to summary judgment. See Advanced Conservation, 934 F.Supp. at 54-55; Baker, 850 F.Supp. at 264.

Has there been any law legislated or newer decision to override the old ruling?

Anonymous · ‎11-12-2007

Check out Pintos v Pacific Creditors Association, Ninth Circuit Court, Case # 04-17558, filed September 21, 2007.

See Page 10 [6]

TryingVeryHard · ‎11-12-2007

@Anonymous wrote:
Check out Pintos v Pacific Creditors Association, Ninth Circuit Court, Case # 04-17558, filed September 21, 2007.
See Page 10 [6]

The ruling in this case applies to a non-credit transaction I believe. The language of the ruling means to say:

that the FCRA only allows debt collectors to obtain credit reports "in connection with a credit transaction involving the consumer."

The case of Pintos vs. Pacific Creditors Associated included a towed car, a credit that was not consumer-initiated.

Anonymous · ‎11-13-2007

New Ninth Circuit Decision Impacts Collectors’ Ability to Obtain Consumer Reports Published: October 01, 2007

"...However, a recent Ninth Circuit decision has thrown into doubt whether a debt collector has a permissible purpose to obtain a consumer report for the purpose of collecting a consumer's account. In Pintos v. Pacific Creditors Association, Nos. 04-17485, 04-17558, 2007 WL 2743502 (9th Cir. Sept. 21, 2007), the Ninth Circuit concluded that debt collection is not a permissible purpose for pulling a credit report unless the debt arose from a credit transaction.

The court held that debt collection, by itself, is not a permissible purpose to obtain a consumer report. Rather, debt collectors are authorized to obtain a consumer report for consumers only for the collection of a debt in connection with a voluntary credit transaction..."

Found on http://www.acainternational.org/?cid=11183

TryingVeryHard · ‎11-14-2007

@Anonymous wrote:
New Ninth Circuit Decision Impacts Collectors’ Ability to Obtain Consumer Reports Published: October 01, 2007
"...However, a recent Ninth Circuit decision has thrown into doubt whether a debt collector has a permissible purpose to obtain a consumer report for the purpose of collecting a consumer's account. In Pintos v. Pacific Creditors Association, Nos. 04-17485, 04-17558, 2007 WL 2743502 (9th Cir. Sept. 21, 2007), the Ninth Circuit concluded that debt collection is not a permissible purpose for pulling a credit report unless the debt arose from a credit transaction.
The court held that debt collection, by itself, is not a permissible purpose to obtain a consumer report. Rather, debt collectors are authorized to obtain a consumer report for consumers only for the collection of a debt in connection with a
voluntary credit transaction..."
Found on http://www.acainternational.org/?cid=11183

This, I believe includes credit card debts right?