Checking Credit
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Checking Credit (by Clare [IL]) Jun 30, 2014 10:09 AM
       Checking Credit (by gevans [SC]) Jun 30, 2014 11:26 AM
       Checking Credit (by Clare [IL]) Jun 30, 2014 11:27 AM
       Checking Credit (by Robert J [CA]) Jun 30, 2014 11:57 AM
       Checking Credit (by Mike SWMO [MO]) Jun 30, 2014 12:12 PM
       Checking Credit (by John... [MI]) Jun 30, 2014 12:23 PM
       Checking Credit (by Nancy [IN]) Jul 2, 2014 4:54 PM
       Checking Credit (by John... [MI]) Jul 2, 2014 6:02 PM
       Checking Credit (by Clare [IL]) Jul 2, 2014 6:08 PM

Checking Credit (by Clare [IL]) Posted on: Jun 30, 2014 10:09 AM

State Specific Question About: ILLINOIS (IL)

We have a tenant that we ran a or background. Mcredit check on before we rented out our Condo a couple of years ago. We have always had them sign a complete new lease, but did not recheck their credit or background. I have the sense they are having difficulties with their finances, late payments.....can I recheck their credit using their original authorization to do so at the beginning of their lease? thanks Clare

Checking Credit (by gevans [SC]) Posted on: Jun 30, 2014 11:26 AM

I've had to cross that bridge before. Here's what my applications now say (last paragraph under credit checks):

Applicant further authorizes and permits the rental owner or manager to obtain updated information annually and on future occasions for rental renewal consideration and for collection purposes should that be deemed necessary. --141.129.x.xx

Checking Credit (by Clare [IL]) Posted on: Jun 30, 2014 11:27 AM


Checking Credit (by Robert J [CA]) Posted on: Jun 30, 2014 11:57 AM

Under the terms of most credit services, you are NOT allowed to re-run a tenants credit. You were granted permission on an original application to do a credit check before renting out your property. Once you rented to the applicant, you have no further permission to re-run their credit, even if it were for collection purposes.

Checking Credit (by Mike SWMO [MO]) Posted on: Jun 30, 2014 12:12 PM

Application similar to gevans

I hereby authorize comprehensive credit, criminal and employment record checks to be made before, during and/or after tenancy.

Could also help me to find then after they skip out.

But may not be useful according to Robert J

Checking Credit (by John... [MI]) Posted on: Jun 30, 2014 12:23 PM

I think doing something like gevans that is specific about what it is for (renewals and collections) MIGHT work. I think something as non-specific as Mike's (just "before, during, and after tenancy" -- meaning "whenever and for whatever reason I want") would not float in court. :)

- John...

Checking Credit (by Nancy [IN]) Posted on: Jul 2, 2014 4:54 PM

You have authorization if your tenant has preauthorized it for collection purposes in the Lease. Do the credit companies attempt to disallow this?

Checking Credit (by John... [MI]) Posted on: Jul 2, 2014 6:02 PM

Nancy: Yes, they tend to disallow it because you aren't really supposed to be able to get some blanket authorization to run credit reports over and over again or for as long as you want.

That being said, my reading of the FCRA (and my reading of Nolo's interpretation of it), seems to indicate that a LL CAN pull someone's report again to try to collect a debt (even without any new written permission and even if the lease/application doesn't explicitly say so) if they have obtained a money judgment.

Of course, that is completely different than the situation here -- where someone just wants to pull it again because it is the renewal time. In that situation, I'd definitely want to have something very clear in writing that says that I can do that at each renewal.

- John...

P.S. People still aren't really sure if LLs are offering "credit" to people. The FCRA didn't define it. The newer FACTA does define it, but seems to do it in such a way that would indicate that rentals are NOT credit -- which, according to other parts of FCRA/FACTA would indicate that we CANNOT pull it later even with a money judgment (which would be the opposite of what I wrote above). The problem is that we're all really still waiting for some real case law on this. heh.

Checking Credit (by Clare [IL]) Posted on: Jul 2, 2014 6:08 PM

So I surmise, it's best to have a new application and a new lease each time the property comes up for renewal. Not a huge deal for me.

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