Can a Debt Collector Make Inquiries on Your Credit?

The Fair Credit Reporting Act regulates the information contained in your credit report. You also have control over who makes inquiries into the report if your state allows you to freeze the file. If your file is frozen, debt collectors may not be able to make inquiries on your credit. If your file is not frozen, debt collectors may access the information.

Accessibility

Credit reporting agencies, such as Equifax, Experian and TransUnion, may only supply a consumer's credit file information to companies having a legitimate reason. Debt collectors working for original creditors and debt buyers who have purchased delinquent accounts from original creditors are allowed access. Other parties with a valid reason for accessing the information include employers, insurance companies, potential lenders, federal government agencies and other third parties having your express permission. Consumers have the right to limit accessibility to databases used by lenders and insurance companies for the purpose of obtaining new clients.

Credit File Freeze

Individual states determine if consumers have the right to freeze their credit file. A frozen credit file restricts access to the consumer, existing lenders and to government agencies. Debt collectors that are in the process of collecting a delinquent account and debt buyers that have purchased the account will continue to have access to a frozen file. Debt collectors that are checking a consumer's credit file prior to accepting or buying the debt may not make inquiries on the file.

Inquiries

The three primary credit bureaus divide credit inquiries into two categories -- hard and soft. Hard inquiries affect your credit rating, but these are authorized by you as a result of applying for a loan or opening a bank account. Hard inquiries typically result in a five-point credit score reduction for a six-month period. Soft inquiries are those made by credit card companies and other lenders when they are fishing for new clients. These do not affect your credit rating. When you check your credit, it is considered a soft inquiry. Debt collectors can fall into either category.

Conclusion

According to Experiean, hard inquiries that are initiated by the consumer are the only ones that impact a credit rating. A debt collector may fall into this category if you are negotiating a repayment plan or a settlement and give the collector permission to access your information. Debt collectors making inquiries that are not initiated by the consumer would fall into the soft inquiry category. All inquiries are added to your credit file, but not all inquiries are available to potential creditors.