Permissible Purpose Discussion--Section 604
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Posted by Dave
(63.228.52.57) on December 12, 2002 at 23:41:02:
So I wanna hear what people think on this topic. Can a collection agency pull a credit report merely because they are trying to collect a debt? Even if the debt did not come about as a result of a delinquent "credit account"? I have read an FTC Opinion letter ("Riddle") saying that a landlord/tenant relationship is not a credit account, so a CA would not have a permissible purpose to collect on a debt evolving out of the landlord/tenant relationship. (in the event that the tenant does not maintain the lease payments and moves out) On the flip side, I have read cases where the court rules that a CA has a permissible purpose to pull a credit report simply because it is collecting a debt; it matters not whether the debt came out of a "credit account". Now I know that there are different opinions on this. Could it be that courts have misinterpreted the statute? Does "credit account" apply to "collection of" in Section 604? If "ejudem generis" is applied to the statutory interpretation, does that mean that a permissible purpose only exists for collection of a "credit account"?
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