Legally getting credit reports for your clients-
mikec | Oct 11, 2009 | Comments 65
How to get a clients report… Legally….
The Fair Credit Reporting Act was created to protect consumers in many ways… As credit professionals we use this law and many others to help consumers exercise their rights!!
One of the provisions of FCRA (Fair Credit Reporting Act), is the availability of an individuals credit history, who can view, when they can view etc…
Now… here’s the catch… The law specifically spells out who can get a report and the reasons for someone to be able to get it… Unfortunately a Credit Repair, Credit Consulting, Credit Restoration or any other creative name is not specifically named as an entity that has “Permissible Purpose” to obtain a copy of a clients credit report!!!
Sooo… That means, a credit repair company cannot simply contract with a reseller or directly with the credit reporting agencies to quickly gain access to clients credit reports like banks, loan offices, auto dealers can…
Now we can certainly argue that a consumer that grants permission should be able to expeditiously get a report through the conduit of its choice… But the fact is – The credit reporting agencies DON’T like credit repair companies… So regardless of their legal ability to provide the reports to credit repair companies (Which they legally can – if they wanted to) they don’t want to promote credit repair in any way… in fact the credit reporting agencies would rather the consumers have bad credit anyway… * (that’s an article for another time…)
Now I know what your thinking… “ I know a Mortgage Guy that can pull reports for me”, “ I know a car salesman that can pull reports for me”…….
The truth is that will probably work for a little while… BUT— Short cuts are really long cuts in disguise in the long run… Many have asked me well, what can happen???
Remember Credit Reporting Agencies are VERY SMART!!!! They don’t like credit repair companies… They can usually “Smell them from a mile away”—- How?? Well… The Car or Mortgage guy, that has the ability to pull credit, has a permissible purpose- In his current business…. But not for you…. He has a contract with a specific vendor that states what he is allowed to pull credit for… The contract undoubtedly will state that they cannot pull for any reason other than an application for Mortgage or Auto loan,….
Now… Here’s what will eventually happen when you take a short cut- The Credit Bureaus SUPERCOMPUTERS will recognize that there are an abnormal amount of credit pulls coming from that certain company…. When they do- they will attempt to establish whether or not the company has expanded (So they can sell them more products)… or whether there is a non permissible purpose problem… Typically the Credit Reporting Agencies won’t care or do anything about a Permissible Purpose problem unless it is costing them $$$$$
Now in the example above- The SUPERCOMPUTERS will not only recognize the abnormal (or normal) amount of Pulls… It will calculate the amount of disputes that it receives after a vendor pulls credit…
What that means is this:
If the Credit Reporting Agencies recognize (and they will) that it is common to receive a dispute (5 out of 10) after a certain “Authorized” puller pulls a report… then they will SHUT THEM DOWN…. They will ask for proof of the permissible purpose ie; signed loan applications, borrower’s authorizations etc….
I’ve been asked “Do they really do that” … the answer is “Sometimes”…. But do you want to me one of those “Sometimes”???
Obviously NOT!!!
So.. Don’t try the shortcut… the easy route is never really easy…
Here’s the right way….
While the client is on the phone with you, go to one of the consumer sites… Consumer sites like myfico or Free Credit Report …. There are a ton of them… The ONLY one that I suggest is Myfico.com, these are the same FICO scores that lenders use…
So, while the client is on the phone with you, go to the consumer site of your choice and enter the client details… You will need to have the client on the phone with you because there will be security questions that only the client can answer…
Now all of the data can be entered and you can get to view the clients report… You will have to pay something… so have your credit card ready and be cautious of signing up for ongoing services… Make sure that any additional services are cancelled right away or you’ll wind up with a surprise when your credit card statement comes….
This is called a “Proxy” order.. A Proxy order is a completely LEGAL way for the consumer to get a copy of his/her report to you quickly… This is called a “Proxy” order because you are acting as the proxy for the consumer…
You are technically typing and using your computer for the consumer…
Many have asked me- “Why don’t you just wait for the consumer to do it themselves”
I think we all know the answer to that one… but just in case… Most consumers will quickly lose interest so you must “get’em while they’re hot”…. Strike while you can… Control the situation by knowing how to get the report fast….
Your friend in the credit biz,
Mike Citron
P.S. If you found this information useful- e-mail me … Give me some more motivation to keep these rants coming to you…
P.P.S. If you don’t like these messages Click here to make your computer EXPLODE….
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Filed Under: Credit Repair Strategies
Hi Mike,
Thanks for this one. I was wondering if you could tell me if myfico.com is going to start giving Experian scores. Also if we should continue to get the Vantage score for that CRA, is there a way to compare it to the FICO score?
excellent article, thats the way.
Mike,
This is a big eye opener for credit companies because clients never take the initiative to pull their own credit and call you back. You can keep this articles coming all day long!!! This is another great message from you, "Stay compliant, Stay in business".
Mike, I'm just getting around to investigating DisputeSuite and this one article answered a huge question for me as to getting credit reports. Do you seek reimbursement for the fees or eat it as a cost of business hoping the consumer will now do business with you?
Mike,
This was a great article. I am always looking for ways to service the client legally despite the CRA's efforts to stop us helping clients with their credit issues.
Thanks.
very good and informative article…thanks
Mike, you are right on the money with this information. For me as a new business, I do not want to re-invent the wheel, nor be non-compliant. KEEP IT COMMING BUDDY.
I noticed that MyFico.com has an affiliate program. Will it work if all the CR requests are coming from the same IP address? I'm just curious if it's worth signing up for it. Thanks for all the great info! You ROCK!
This is great information. Great to see legal ways to keep our industry clean. This webinar we are seeing and listening to right now is fantastic. Thank you Mike. Awesome material and looking forward to next years Credit Bootcamp. Please send over those free items you mentioned. Thanks!!
Great job on the webinar today! This is great information for newbies and a good source for us old-timers as well.
Keep up the good work!
Great blog! my question was answered!
This article answered many questions about credit files. Today's webinar was very strong. Glad we are back on. Look forward to the materials.
Great blog article – I had been having my clients use annualcreditreport.com, but since they can only get their report once a year the MyFICO gives them the availability to constantly monitor their score as well as their report.
As always the webinar today exceeded my expectations – Your training has been missed the past couple of weeks – I applaud you stance on CROA, there are too many people trying to 'get around' the law.
I know that at the most recent Boot Camp attendees were able to get 'Certified' – is it possible for those of us that attended the first Boot Camp to get certified?
Great information Mike I have been using Mycreditkeeper.com since they also have some great tools but definately myfico.com is more accurate.
Sincerely
Luis
I have my clients on the phone and I pull up Annualcreditreport.com. Good only once a year but it does have good info. I also have a friend of in mortgage business prepare a turndown letter and send that in for my client-works pretty well.
Hello Mike, I really enjoyed this article. I had this same question asked several times to me from real estate investors. Can I pull their credit with out waiting so long.
Your webinars are great, and very informative. I look forward to more…!!!!!
Tiffany J.
Mike, thank you for sharing this information on how to legally obtain a credit report for a client…Also, I really enjoyed today's webinar and appreciate that you went above and beyond in answering everyone's questions. Once again, thank you very much for all of the valuable information.
Very helpful info. I listened to your webinar for the first time today as well. I appreciated the emphasis on building a credit repair business with integrity, instead of trying to find shortcuts. Keep it coming!
Mike,
This was good to know. We use True Credit, but have found large discrepencies in the score when the mortgage broker pulls their credit. We will switch to MyFico.com. Thanks so much.
Enjoyed the article and the webinar today. Mike has an open and sharing heart. I'd like to let him know how much I appreciate his attitude and his information
Thanks for this information and making sure that this industry becomes a better one. MyCreditKeeper.com is also a good service for the client to use. Free for 30 days $9.99 a month there after. All 3 scores every month.
Mike, Great article. I agree with doing the proxy. The client will always find a reason to NOT take the next step, and then not move forward with the process. Love the information – and adore the webinar.
Forgot the testamonial. The webinar was OUTSTANDING. I always learn so much from them. You have so much passion on credit restoration. Thanks so much for giving so freely of your time.
Great post Mike, and valuable information. The customer's credit card can also be used rather than ours to limit out of pocket costs.
Super webinar today with timely Q & A. Thanks.
Good information once again, Mike. Is it not necessary to have a ID# for each CRA, in order to do a dispute? Are those not available only through requesting directly through each one?
Today's webinar was good. It is always nice to have a "refresher" on certain strategies. Realizing that the web is completely viral now, I look forward to learning more about marketing through those mediums. I know it is a shortcomming of mine at the moment. Again, thanks for what you are doing.
Mike, thanks for the tip. The question I have though, is they say they provide the Equifax credit report, what about the reports from the other 2 bureaus? When you repair somenone's credit you do look at the information being reported on all 3 bureaus, right?
And by the way, great webinar today! This was my first one & I'm now definitely motivated to do my best to participate every week.
Mike, not only are you "a friend in the credit biz", but you are a true Credit Sensei !!! I learn and gain insight everytime I read or listen to what you have to say. This article is GREAT for a newbie like me! Awesome… just like you and your team at Credit Suite.
I tried this tech.on free credit report .com and they flagged me after the 3rd one. Any suggestions?
As a family law attorney I have had the need to pull a credit report on my client when the client did not know the amount of the outstanding balance. This post highlights a flaw in my current system that I did not know existed.
Mr. Citron also gives webanars on Wednesday evenings. Yesterday he gave a great presentation and continued an hour overtime till every question was answered.
Todd Bober Esq.
Crystal Beach, Florida
Great informational blog. Also enjoyed the webinar and learned that the debt negotiation techniques I learned from another company's kit may not be to the best interest of my client. They suggested I negotiate all settled debts as paid in full showing a zero balance. However, because the last activity date is revised to the date of the settlement, it shows up as a recent negative report. You suggest we negotiate having this removed from the credit report… which I will pursue for my clients from this day forward. Thanks again Mike!
Mike I was just cruising the blog and I am glad that I have read this article,, i have been having the problem of consumers procrastinating when it comes to providing me with their credit reports in order for me to even get to first base with them ,,, Thanks A Bunch
Marquis
Mike,
You are the best. You always have great information. Thank you for being someone we can rely on for great information.
Great article!
Mike what is your opinion on credit monitoring programs?
Great webinar today as usual. Thanks for your time
Great Info. An eyeopener!
Hi Mike, I again learned more strategies from yesterday's webinar. Please keep these coming!!!
Great blog once again Mike. I would just like to add another reason why we should not pull reports from a mortgage broker or car salesman. The reason is that the consumer will expect to see your companies name as the inquiry that will appear on their reports but that will not be the case (even if you tell them before you run the report what inquiry will show as). It will be the company who did you the favor name on the inquiry including the reseller. Than what can happen is the consumer will call the reseller & say they never authorized that company (who did you the favor) to run their report. Than the reseller will call the company who ran the report for you to ask for an authorization form that they had permission to run that consumers credit report. That can potentially lead to the company that did you the favor of getting shut down if they cannot provide the reseller with any authorization form.
Great webinar once again today Mike. I really look forward to them every week. There filled with a ton of great information. I wish you & your family a happy Thanksgiving!
Mike,
I enjoyed the webinar again today . . . keep them coming.
Mike,
this a brilliant way for us to obtain a report ASAP, as you said and after 27 years in sales and 19 years in credit analazation and improvement service, I agree whole heartedly, finally away to defer the inevitable, procrastanation of customers, what a great way to get them committed.
Thanks,
Chris & Rehannon
Mike,
I shared this article with a referral partner of mine and it blew him away. He was doing things that would have led him down a path to hell. Needless to say, solidified my position with him. Thanks again for your great help.
Steve
Good webinar today. Nice feature to see you in "action". Would like to learn more about viral marketing. Do you have a class or way for the beginner to learn how, and where to start?
Mike,
Great information as always. You are a great education source. Thank you for all that you do (and do so well).
How can I get the Identity theft book when I'm already signed up for Boot Camp?
Mr Michael Citron love the information keep it comming was at the boot camp,it was outstanding, I will be at the next one in april.
WOW, this is exactly what i am talking about!!! The information that you give is so vital to our business and yet you do not charge for this? I for one am glad to have someone like yourself on our side.
Mike, the webinar today was awsome!!! I would love to have my website reviewed by you… I still can not believe the amount of information and dedication that you have !!! Please keep it comming.
Mike,
Thanks for the good info. We are using this approach and it works fine. Also, I did attend the webinar today the critiqued websites. The info was very helpful. We are currently working with "Done for You" for our new site. I would like to get the FREE STUFF offered on the weibnar today!!!
Thanks.
Reney
Mike,
Great info as usual. I remember you saying something about why you should not have your client pull credit from Annual Credit Report. Could you please explain that again?
Thanks,
Steve
I have been pulling from Myfico.com for a long time. Reading this article from you confirms that I am doing the right thing. Thank you for having this blog keep the information coming.
The webinar was very informative like always. Being a new year I really needed to hear how to prioritize projects. I had never thougth about naming things to do "projects" that makes it a lot easier for me to deligete things to employee by having them do the things that they are good at. WONDERFUL WEBINAR. Please e-mail me the free stuff you talked about.
I am so blessed to be associated with people like you.
Thanks again bud for all the valuable info. I have mentioned to Realtors to make sure they dont get into a habit of pulling clients credit report and forwarding to credit repair firms without a permissable purpose. Because this is not a permissable purpose, I mention this can cause them to also loose their relationship with their tri merge company and who knows maybe even getting sued if CRAs ever found out. The client needs to apply for extension of credit and complete an application and get authorization from client to forward to credit repair company..
Everytime I attend your webinar or visit your site i am one step closer to being a credit guru thanks Mike.
PS thanks for the giveaways one your webinar