Collection Agency Credit Check

Find out how collection agencies work.
Find out how collection agencies work.

A collection agency credit check can occur when an organization is working to collect money from you. By law, they have every right to obtain a copy of your credit report while reviewing or collecting on an account.

What is a Collection Agency Credit Check?

Seeing as how it is your credit report, you are always entitled to a copy. However, you aren't the only one. The law dictates that any individual, business, or government agency who is in the midst of a transaction with you, the consumer, can obtain a copy of your credit report.

The list of people who can pull a copy of your report and check your credit history include but is not limited to:

  • Banks, mortgage lenders, and other financial institutions
  • Credit card companies and other types of creditors
  • Leasing agents and potential landlords
  • Potential employers
  • Government agencies performing security clearances
  • Business partners
  • Courts
  • Collection agencies

Though collection agencies are at the bottom of the list, it is not unusual for an individual who has defaulted on an account to be subject to a collection agency credit check. Often times, collection agents pull a report simply to check for an updated telephone number or address so they may contact you to collect the debt. However, the collection agency credit check may also be used by an agency to get an idea of your current financial situation.

If you haven't paid a debt because you claim that you have no money, the agency may check to see if you have established new accounts and whether or not you have paid these debts. If you have established new credit, charged a lot, and kept the accounts paid, the agency may want you to explain why you haven't paid off old accounts first.

Avoiding a Collection Agency Credit Check

Many people feel like their credit report should be private and take offense to the thought of someone looking at it without permission. If you feel the same way and want to avoid a collection agency credit check, then you will need to make every effort to work with the agency and pay off the old debt. This way, they will have no reason to pull your report and look at your personal information.

If you are wondering whether or not any of the collection agencies you are working with have obtained a copy of your credit report, you can contact one or all of the three major credit bureaus. By law, these bureaus are required to give you a list of anyone who has requested a copy of your report for collection purposes within the last six months.

Collection Agency Credit Check