What happens if your credit was pulled without your approval?

On Behalf of | Jul 6, 2022 | Invasion of Privacy

Consumers in Minnesota and throughout the country have privacy rights when it comes to their credit. If your credit report was unfairly disclosed without your permission, it might be considered an invasion of your privacy.

When is it permissible for a credit report to be pulled?

There are certain legal reasons why your credit report can be pulled. Per the Fair Credit Reporting Act, it’s legal for a credit report to be pulled in the following situations:

• When you apply for credit or a creditor is reviewing your account or taking collection action on it
• When a potential creditor or issuer plans on extending an offer of credit or insurance to you
• When you apply for insurance
• For the purpose of an employer hiring or firing you, but only when you have given them permission
• When it’s ordered by a judge or jury.
• When you apply for certain government licenses or benefits that require a financial background check
• When you start a business transaction and there is a legitimate business requirement for your credit report to conclude the deal

When is it illegal for a credit report to be pulled?

It’s illegal and considered an invasion of your privacy when a credit report is pulled for impermissible reasons. Current and prospective employers need express consent to do so.

Creditors cannot pull your report after you’ve discharged their debts through bankruptcy. A credit pull is illegal when it’s done against you as evidence in a divorce, personal injury or any other type of lawsuit that has nothing to do with credit.

Unless they gain a judgment against you, landlords cannot have your credit report pulled just because you owe them rent.

It’s illegal for credit card companies to do pull a credit report on a person who is an authorized user on a card. It’s only legal to do that on the owner of the account.