My past is coming back to haunt me - What does "Permissible: collection" inquiry mean?

[Anonymous]

I am fairly new to this site and since I am trying to improve my credit scores, because I will probably be looking into getting a mortgage in a year or two from now -- hopefully two years - because I really need the time to get my credit card debt down -- I realize that is what is hurting my scores.  I use my cards too too much.  I took a scissor to them today. 

I recently did "A free annual credit report" and wasn't happy with my scores, etc.  I don't have any past due accounts, collections or public records that show on the report, but there is an inquiry by Midland on my TransUnion report.  It doesn't show on Experian or Equifax.

What does it mean when company does an inquiry and it says "Permissible - collection"?  I did a stupid thing by calling them about 2 weeks ago to find out why they did a check and they told me it was for a debt that was approximately 23 years old. Midland never called me and I never received anything from them in writing.  I didn't  realize that I was opening a can of worms for myself by calling them.  They tried to get me to pay it, et cetera, but I disputed the debt and haven't heard from them.  They said that the debt was $1200 and it was opened in 1985 and the last payment was in 1993. 

I don't remember anything like this - but I was having financial problems at the time so it could be mine.  I am going to dispute it no matter what since I really can't afford to pay it.  Can they force me in any way to pay this since it is 23 years old and the last payment they claim they received was in 1993?

Can I fight this?  If I eventually apply for a mortage in a year or two from now, will the lender see the "Permissible - collection" inquiry?

Can they just report this as an open account on my credit report?  I live in New York so the SOL is 6 or 7 years.  Do they have to notify me in writing before they do that? 

Seeing that on my credit report has really made me nervous -- my past is coming back to haunt me.  I don't need any additional debt.  The only thing I want to concentrate on is getting rid of my credit card debt.

Thanks for any info.

[Anonymous]

IF a Debt is past CRTP- they do not have PP to access your credit report.

Actually- CA's have very few cases where they actually do have PP.

FCRA- www.ftc.gov/os/statutes/031224fcra.pdf

§ 604. Permissible purposes of consumer reports

[15 U.S.C. § 1681b] starts on page 12.

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needcreditfix wrote:

I am fairly new to this site and since I am trying to improve my credit scores, because I will probably be looking into getting a mortgage in a year or two from now -- hopefully two years - because I really need the time to get my credit card debt down -- I realize that is what is hurting my scores.  I use my cards too too much.  I took a scissor to them today. 

I recently did "A free annual credit report" and wasn't happy with my scores, etc.  I don't have any past due accounts, collections or public records that show on the report, but there is an inquiry by Midland on my TransUnion report.  It doesn't show on Experian or Equifax.

What does it mean when company does an inquiry and it says "Permissible - collection"?  I did a stupid thing by calling them about 2 weeks ago to find out why they did a check and they told me it was for a debt that was approximately 23 years old. Midland never called me and I never received anything from them in writing.  I didn't  realize that I was opening a can of worms for myself by calling them.  They tried to get me to pay it, et cetera, but I disputed the debt and haven't heard from them.  They said that the debt was $1200 and it was opened in 1985 and the last payment was in 1993. 

I don't remember anything like this - but I was having financial problems at the time so it could be mine.  I am going to dispute it no matter what since I really can't afford to pay it.  Can they force me in any way to pay this since it is 23 years old and the last payment they claim they received was in 1993?

Can I fight this?  If I eventually apply for a mortage in a year or two from now, will the lender see the "Permissible - collection" inquiry?

Can they just report this as an open account on my credit report?  I live in New York so the SOL is 6 or 7 years.  Do they have to notify me in writing before they do that? 

Seeing that on my credit report has really made me nervous -- my past is coming back to haunt me.  I don't need any additional debt.  The only thing I want to concentrate on is getting rid of my credit card debt.

Thanks for any info.

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[Anonymous]

It seems to me that CAs have permissible purpose:

§ 604. Permissible purposes of consumer reports [15 U.S.C. § 1681b]

(a)In general. Subject to subsection (c), any consumer reporting agency may furnish a
consumer report under the following circumstances and no other:

(1)In response to the order of a court having jurisdiction to issue such an order, or a
subpoena issued in connection with proceedings before a Federal grand jury.

(2)In accordance with the written instructions of the consumer to whom it relates.

(3)To a person which it has reason to believe

(A) intends to use the information in connection with a credit transaction
involving the consumer on whom the information is to be furnished and
involving the extension of credit to, or review OR COLLECTION of an account
of, the consumer; or

[Anonymous]

A few notes-

For collection purposes-

MUST be from a "credit transaction" as defined in UCC

and 9th District Pintos case.

In the FTC Gowen opinion- Closed accounts nor installment accounts have PP. CA accounts must be marked "Closed" on your credit report as you don't have access to that CL anymore do you?    www.ftc.gov/os/statutes/fcra/gowen.shtm  

So IMO- The internal collections of an OC that was an original "Credit Transaction"  has PP under the potion of FCRA you have quoted.

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upmyscore2008 wrote:
It seems to me that CAs have permissible purpose:

§ 604. Permissible purposes of consumer reports [15 U.S.C. § 1681b]

(a)In general. Subject to subsection (c), any consumer reporting agency may furnish a
consumer report under the following circumstances and no other:

(1)In response to the order of a court having jurisdiction to issue such an order, or a
subpoena issued in connection with proceedings before a Federal grand jury.

(2)In accordance with the written instructions of the consumer to whom it relates.

(3)To a person which it has reason to believe

(A) intends to use the information in connection with a credit transaction
involving the consumer on whom the information is to be furnished and
involving the extension of credit to, or review OR COLLECTION of an account
of, the consumer; or

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[Anonymous]

Does that mean I can dispute the hard inquiries by the CAs?

[Anonymous]

It means you should know your rights.

I would sue them- but that is me.

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upmyscore2008 wrote:
Does that mean I can dispute the hard inquiries by the CAs?

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[Anonymous]

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@Anonymous wrote:

IF a Debt is past CRTP- they do not have PP to access your credit report.

CRTP needs to be defined in your 'common abbreviations' thread.

I did search and found it though .... thanks

J