A proposed class action filed against PennyMac Loan Services, LLC claims the company violated the Fair Credit Reporting Act (FCRA) by allegedly routinely procuring consumers’ credit reports to review credit obligations and to collect on consumers’ debts. The 12-page lawsuit alleges specifically that the defendant “knowingly and intentionally” procured credit reports of consumers “whose debts had been discharged in bankruptcy,” for which the case says there was “no permissible purpose for accessing such reports.”
From the lawsuit:
“Permissible purposes for accessing a credit reporting include, but are not limited to, a person seeking a credit report in connection with a possible credit transaction, employment purposes, servicing of an existing credit obligation, or an otherwise legitimate business need. Even if [the defendant] has permission to pull [the plaintiff’s] credit report prior to the filing of the bankruptcy case, such permission was revoked by operation of law due to the bankruptcy discharge.”
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