Quote:
Originally posted by Kimmykim
Chris R, obviously you don't seem to understand the word disclosure.
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I understand it fine, perhaps you need to look it up.
Disclosure means to LET THE CONSUMER KNOW AFTER IT WAS REQUESTED
It has nothing to do with permission - which is what you were saying.
"Checking credit without permission is indeed against the law."
I already posted the links showing this was wrong. If you bothered to read the FTC links - you would see that it is not required in all cases.
I notice how the parts you quoted left out everything in section 3 - nothing of which requires permssion:
"(a) In general. Subject to subsection (c), any consumer reporting agency may furnish a consumer report under the following circumstances and no other:
(1) In response to the order of a court having jurisdiction to issue such an order, or a subpoena issued in connection with proceedings before a Federal grand jury.
(2) In accordance with the written instructions of the consumer to whom it relates.
(3) To a person which it has reason to believe
(A) intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer; or
(B) intends to use the information for employment purposes; or
(C) intends to use the information in connection with the underwriting of insurance involving the consumer; or
(D) intends to use the information in connection with a determination of the consumer's eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant's financial responsibility or status; or
(E) intends to use the information, as a potential investor or servicer, or current insurer, in connection with a valuation of, or an assessment of the credit or prepayment risks associated with, an existing credit obligation; or
(F) otherwise has a legitimate business need for the information
(i) in connection with a business transaction that is initiated by the consumer; or
(ii) to review an account to determine whether the consumer continues to meet the terms of the account."
Plenty of places can legally check your credit without your permission. Their either have to give permission OR have to have a legitimate business purpose THAT WAS STARTED BY THE CONSUMER.
How ANYONE can believe otherwise is beyond me. Collection agencies will check credit reports. They even have a seperate section for it. Please let me know when the last time was someone gave a collection agency permission to look at their credit report.
Just as pointed out by the FTC:
"Credit card issuers, likewise, often choose to notify applicants that a consumer report will be obtained, even though they are not required to do so."
http://www.ftc.gov/os/statutes/fcra/shibley.htm
You are correct about it lowering your credit score, however - this may have just been a header check - and if so those inquiries are only seen by the consumer - and no other creditors.
Lots of places do this - and usually it indicates this on the credit report (which ones are this type). If I get a chance later today I will see if they pulled one on me - and if so what type it was.
If it was a header check - they only get ID info.
Plenty of places put this in their contract, but it isn't usually required. Just as some sponsors put in if you cheat - you will be kicked out. They don't need to do this to kick someone out.
This is a common misunderstanding, and very well may have been illegal in this case, but it certainly is not in most cases.