Question : is it a violation of loan privacy law for a commercial lender to share information on accounts that they have?
two different lenders: same client. when client was in default with lender number 1, lender number 1 notifies lender number 2, who the client was not in default with, and passes along that information. the harmful result was that clients credit relationship with lender number 2 which was in good standing, had credit line withdrawn based on negative information from lender number 1.
commercial loan lender

Best answer:

Answer by Cliff
Yes it is legal…when you get a loan, you agree to allow them to report account information to credit bureaus and other creditors.