A Credit.com reader, Lori, wanted to know if a debt collector could continue to pull her credit even after a small-claims case had been dismissed. She had successfully had the information removed from her credit reports, but the collection agency, which now had no case against her, had pulled her credit twice since the case was dismissed. Her question: Is that legal?
The answer is simple, according to Chi Chi Wu, an attorney with the National Consumer Law Center: No. In the organization’s legal manual Fair Credit Reporting, it says:
Even in the case of credit accounts, collection is not a permissible purpose for obtaining a consumer report once the account is no longer collectible.
Making the debt collectors stop checking, however, may not be easy. Lori may need to to complain to regulators and/or hire an attorney, Wu said. She can submit a complaint to the Consumer Financial Protection Bureau, or she could look for a lawyer (the National Association of Consumer Advocates has a list on its website).
That makes sense.
Once a debt no longer exists there is no PP.
Does that only count for hard pulls, or would it apply for soft pulls as well?