Here is the problem: Insurance Companies can only access a consumer's credit Report IF that consumer has a vehicle insured with their company. However, they cannot check a another consumer's report if they happen to live at the same address as the Policy holder just because a Drivers License. If they do, they can be held accountable for violations of the 15 USC §1681b, and you can collect $1000. Guess what??? They do it all the time.
Thanks for sharing. Insurance companies think they are gods, as they roam through a consumer's credit report causing multiple inquiries. However they are governed by the Fair Credit Reporting Act. Insurer Obligations You must have a permissible purpose before obtaining a consumer report - generally, that the report will be used in connection with the underwriting of insurance involving the consumer or with the consumer’s permission (§ 604) - and must take certain steps after you take an adverse action based on information in the report. 15 U.S. Code § 1681b - Permissible purposes of consumer reports (a)IN GENERALSubject to subsection (c), any consumer reporting agency may furnish a consumer report under the following circumstances and no other: (2)In accordance with the written instructions of the consumer to whom it relates. Simply put, they need the written authorization from teh consumer to have a permissible purpose to obtain a consumer's Credit Report.....PERIOD!!!
Here is the problem: Insurance Companies can only access a consumer's credit Report IF that consumer has a vehicle insured with their company. However, they cannot check a another consumer's report if they happen to live at the same address as the Policy holder just because a Drivers License. If they do, they can be held accountable for violations of the 15 USC §1681b, and you can collect $1000. Guess what??? They do it all the time.
Thanks for sharing. Insurance companies think they are gods, as they roam through a consumer's credit report causing multiple inquiries. However they are governed by the Fair Credit Reporting Act. Insurer Obligations
You must have a permissible purpose before obtaining a consumer report - generally, that the report will be used in connection with the underwriting of insurance involving the consumer or with the consumer’s permission (§ 604) - and must take certain steps after you take an adverse action based on information in the report.
15 U.S. Code § 1681b - Permissible purposes of consumer reports
(a)IN GENERALSubject to subsection (c), any consumer reporting agency may furnish a consumer report under the following circumstances and no other:
(2)In accordance with the written instructions of the consumer to whom it relates.
Simply put, they need the written authorization from teh consumer to have a permissible purpose to obtain a consumer's Credit Report.....PERIOD!!!