When you sign up for credit such as mortgages, credit cards, auto loans and so forth, you also agree to allow the creditor (and its designated representatives) to pull credit reports on you anytime they feel it’s necessary. This means they can pull your report periodically and most do. Some pull a report quarterly while others pull one annually.
The two most common reasons for pulling credit reports are late payments and collection actions. In the case of late payments, you can expect them to not only pull a report but, in the case of many credit card companies, expect them to raise your interest rate. When an account is sent to collections, the right to pull your credit report goes with the account. Thus collectors have a legitimate business reason to review your credit report.
Home » Searches » Debt collectors can legally check your credit reports because it’s considered a legitimate business purpose according to the Fair Credit Reporting Act.