Running Credit/Criminal Report Services
Hi there,
I am planning to do credit repair/improvement and tenant criminal/credit screening services to people and business.
So first they will have to sign the release to have me run 3-credit bureau reports and then make recommendations or help them in other areas. BTW I am planning to use http://www.myFICO.COM, or actual credit bureau websites.
Are they any legal ramification of me running/pulling people credit reports from my home computer probably using my own credit cards?
What websites can I go to run criminal reports and credit reports for the least expensive?
Any advise?
[ Edited by james_CA on Date 08/10/2004 ]
Pulling credit reports is illegal (and potentially costly in lawsuits from consumers whose reports were pulled) without permissible purpose. In order to provide the service you're talking about, you would need agreements with the CRAs and other furnishers of data, and you need agreements with your customers, all in proper form. You would also need to have a good understanding of the FCRA. By no means should anyone start offering such a service willy-nilly.
Depending on the technical level of your county, you might find the criminal/small claims information online through the sheriff's and clerk of court sites.
http://www.ftc.gov/os/2004/07/040709fcraappxh.pdf
Hey flacorps,
I am not 100% clear on what James plans on doing, but why do you think he needs the CRA permission? If he gets the individuals signed permission, and clearly discloses what he is trying to do, I don't see why he needs anyone elses permission.
I am just curious why.
Presumably he wants to contract with the CRAs directly to get low rates that would make his service potentially profitable, rather than giving all the margin to 3rd party services. To do that will require signing whatever the CRAs proffer.
Hey,
Based off his post, I think he is going to go to a 3 in 1 website and pay $29, or something, to get the report. Based off that he is "help them". I don't think he needs anyone's permission other than the person he is pulling the credit for.
Hey James,
Tell us what specifically you are trying to do and maybe we could answer the question.
Bruce, I think you hit on exactly what he was asking. I have the same question.
If I get approval from the rentor, It seems I should be able to use the "quickie" credit site to pull a report.
But I have been hesitant, So some input from others would be appreciated.
It's complicated. But the point is that whoever keys in the information and gets to see the report should have some sort of bona fide papertrail back to the pullee. If you're not super-careful about this, sooner or later someone at one of your clients is going to pull credit on his or her new boyfriend or girlfriend, or ex-spouse, and all hell is going to break loose.
Ideally the person in this business is not casually going to a website for all his or her pulls. That's far too expensive, and without an affiliate relationship with one or more CRAs, the person won't be up to date on policies and procedures, and sooner or later there will be a problem.
It's quite possible there is a state license required. If not as a private investigator, than as some other kind of professional. I know if I were sitting in a state legislature I wouldn't want to leave it to individuals to have to police who is pulling their credit ... there's far too much of a possibility of identity theft and far too few consumers check their reports.
I was registering for a new credit pulling agency last night and I noticed that it will only let my pull credit on prospective tenants. It specifically said that I can't pull my own, a family member's, or friend's credit. Why if I have written authorization do they care whose credit I pull?
Quote:Why if I have written authorization do they care whose credit I pull?
Federal law sets some of their TOS, they set the rest ... you can't pull your own because they can sell you your own for $9 a pop, not whatever the pittance is they're charging you as a potential creditor.
http://www.aprdata.com/experian/guidelines.pdf