I got a letter from a collections company saying I needed to contact them or my current credit score, XXX, might be negatively affected. Is that legal?
2006-09-15 12:42:30 · 8 answers · asked by kalatraz22 1 in Business & Finance ➔ Personal Finance
I understand that having a collections action filed against me will impact my credit score. But I thought that if a company looks up my credit score (like a credit card application), my credit can be negatively affected. So it seems like I might get hit twice here. . . since they quoted my credit score AND apparently have filed a collections claim.
2006-09-15 14:35:20 · update #1
When a collection agency is "shopping" for bad debts, they are allowed to access reports as a soft inquiry.
When a collection agency purchases the bad debt, they can pull a hard inquiry.
What stinks is that if they are really twisted, (if they own the debt) they will pull a hard inq. once a month (or more) Just to put the pressure on the debtor, or, more than likely, just for grins.
2006-09-15 16:33:55 · answer #1 · answered by echo 7 · 0⤊ 0⤋
That doesn't sound like a legitimate tactic for getting you to call them. I would not reply. To answer your question, collection agencies CAN legally access your credit report if its for business purposes. That process of sending you a letter threatening your credit score doesn't sound right to me. Check out the company and make sure they are legitimate.
2006-09-15 12:48:13 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you have a collections company on you in the first place it will hurt your credit, if you are struggling with debt you may want to find a reputable company to represent you and offer you counseling on how to deal with collections companies.
2006-09-15 12:47:11 · answer #3 · answered by Anonymous · 0⤊ 0⤋
They can not access your bureau, but if they file a collection against you, it will show on your bureau which will hurt you. They file it with the bureau company and the bureau company will put it on your credit.
2006-09-15 12:52:04 · answer #4 · answered by indigonipple 3 · 0⤊ 0⤋
Yes. Whichever account of yours they were collecting for probably had you sign something when you first opened your account with them stating that they could access your credit report. It's standard procedure.
2006-09-15 12:48:40 · answer #5 · answered by Speedy 3 · 0⤊ 0⤋
They don't ACCESS the report. They do the reporting. That not only is legal, it's how it works.
Thats how credit reports are scored.
2006-09-15 12:58:00 · answer #6 · answered by Vince M 7 · 0⤊ 0⤋
Off Course, but you still have rights.Start by seeking Protection
2006-09-15 12:47:34 · answer #7 · answered by nick 2 · 0⤊ 0⤋
yes. They do that. Its part of their job to remind you of your responsibility.
2006-09-15 12:51:10 · answer #8 · answered by *Ginelle* 3 · 0⤊ 0⤋