Rebuilding Your Credit

[Leadberry]

I recently settled a debt with Asset Acceptance via their lawyers, Fulton, Friedman & Gullace LLP.  I paid via credit card (I know, I'm impatient).  When I pulled my CR's via USAA shortly after, I noticed I got a HP from the law office!  The reason listed is "credit card."  Is this a permissible purpose?

[madmann26]

I can't imagine way paying a bill would warrant a HP, especially with that notation. I would challenge that via CMRRR now.

[Shogun]

That is not a permissable pull.  First off, there is no reason to pull someone's CR for payment. Secondly, they are not a CC company.  I would contact them concerning this.

[Leadberry]

I just found the following in the FTC staff report on the FCRA; it is regarding section 604(a)(3)(A):

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A collection agency, detective agency, private investigator, or attorney has a permissible "collection" purpose under this section to obtain a consumer report on a consumer for use in obtaining payment of that consumer's account on behalf of a creditor.  A creditor may obtain a consumer report on an existing account to formulate its collection strategy.  An attorney collecting a debt for a creditor client has a permissible purpose to obtain a consumer report on the debtor to the same extent on the client.

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 I called FFG to see what they had to say about it, and they said the inquiry was made on 1/30 because I had entered into a settlement agreement without providing payment information.  He stated I provided payment information on 1/31.  Everything he says seems to be valid to me.  Any new thoughts or is your advice still the same?

[guiness56]

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Leadberry wrote:

I just found the following in the FTC staff report on the FCRA; it is regarding section 604(a)(3)(A):

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A collection agency, detective agency, private investigator, or attorney has a permissible "collection" purpose under this section to obtain a consumer report on a consumer for use in obtaining payment of that consumer's account on behalf of a creditor.  A creditor may obtain a consumer report on an existing account to formulate its collection strategy.  An attorney collecting a debt for a creditor client has a permissible purpose to obtain a consumer report on the debtor to the same extent on the client.

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 I called FFG to see what they had to say about it, and they said the inquiry was made on 1/30 because I had entered into a settlement agreement without providing payment information.  He stated I provided payment information on 1/31.  Everything he says seems to be valid to me.  Any new thoughts or is your advice still the same?

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I think the attorney is taking that out of context.  The FCRA does provide PP to the attorney for use in obtaining payment but I take that to mean looking at your CR to see if you have the ability to pay based on what is on your CR.  I have just never heard of a PP because you failed to include your payment information.  It isn't like they can look and see what type cards you have and get money from them.

I could be wrong.  Just a bit strange to me.

[RobertEG]

I agree. 

The only permissible purpose would be if viewed as a business transaction initiated by the consumer that gave rise to a need to review the consumer's credit standing as part of their acceptance of payment.

You have offered payment, so permissible purpose would no longer be associated with collection activities.  Your payment ends collection activity.

Payment by check might possibly qualify as such a need, but upon offering payment by credit card, the CCC will pay and hold the consumer responsible for the incurred debt.

I dont see a legitimate business need to review the consumer's credit standing as a result of offering guaranteed payment.

[Leadberry]

Alright, thanks for the feedback.  I'll be sending out a letter asking them to delete via CMRRR tomorrow.  Now I'm curious to see where this goes.

[Yj002]

Can anyone tell me what an "HP" stands for? Thanks

[DaBears]

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Yj002 wrote:

Can anyone tell me what an "HP" stands for? Thanks

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HP means Hard Pull on your credit report.