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Guarantor Access To Borrower's Credit Scores

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Question: 
Does a potential guarantor have a right to see the credit report or be told of negative items or credit scores for a potential borrower? Specifically, an existing customer of our bank sent in someone for a car loan. The existing customer offered to guaranty the loan. We ran a credit report on the potential borrower, and the credit scores were low and the report contained various collection items.
Answer: 

Under the revisions to Regulation B, you do not violate the primary borrower's privacy if you tell the guarantor about the borrower's credit deficiencies. However, FCRA does not contain a similar protection. I would recommend that you discuss the credit concerns with the guarantor but not the specifics.

First published on BankersOnline.com 06/2/03

First published on 06/02/2003

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