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The FCRA states that the only permissible purpose for pulling someones credit report is a) firm offer of credit b) insurance c) employement or d) a court order.
If the creditor is no longer the owner of the debt, and they report the account as late- this would be obvious reporting of inaccurate data.
If there is no longer a scheduled payment due and payable to the original creditor, the account should not be reporting late.