Is this illegal?

[FixMyCredit1992]

When I got hired on at Sears, part of my training was to apply for a searscard.

I told them I would most likely get denied, but the HR person said "Let's do it anyway".

I was denied, of course.

One day I was with someone being trained and happened to look at the HR's training manual. Having the trainee apply for a searscard is actually part of the hiring process.

Come to find out, the trainer gets a $2 commssion for each person they apply, regardless of the app status.

[Platinum]

I don't think it's illegal because the decision is always yours but it is unethical for sure.

[Creditaddict]

Many companies like Dillard's, I think macys basically require you to have the card to use your employee discount but Dillard's gives you a prepaid if you don't qualify.

even when I worked at Newman Marcus you could use the card or cash... Employees couldn't use Amex cards and get discount.

[scenery_guy]

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@FixMyCredit1992 wrote:

When I got hired on at Sears, part of my training was to apply for a searscard.

I told them I would most likely get denied, but the HR person said "Let's do it anyway".

I was denied, of course.

One day I was with someone being trained and happened to look at the HR's training manual. Having the trainee apply for a searscard is actually part of the hiring process.

Come to find out, the trainer gets a $2 commssion for each person they apply, regardless of the app status.

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Wait. What? 

Not a chance I would have proceeded with the application. Did they let you know it would be a HP for the card? If you are building your credit or trying to recover (not being mean by that statement just noting your signature and screen name) then that HP is not going to be a good thing. You need to minimize that activity as that pull will be on record for 2 years and will effect your credit scores for 1 year. 

I would have given the HR person a lecture on credit and HP effects. I know it's awkward during job training but this is total crap. Sorry you had to deal with it. 

[FixMyCredit1992]

They didn't mention a HP. They never tell the trainees about hardpulls, the fact the app will hurt your credit, anything. Most of the people hired are 18-20, I doubt any of them know what a HP is.

They don't ask anyone if they want a CC, they basically make them sign up, much like a high-pressure salesmen tries to get someone to buy a car. There is no time to think about it, it's a very straightforward process.

The HR's exact words "Ok, the last step, your going to apply for a searscard." It's not a question to the trainee, it's a statment. 

I'm sure the trainer doesn't want to throw any negatives out and not have people app. I'm sure she pulls an extra $200 a year doing apps.

I've heard through the grapevine if the store gets enough apps, the RM (regional manager) gets a $2,000 bonus.

Sears/Kmart is very pressuring about CC apps, up until a few years ago, they used to fire people for not getting enough apps. It's all about making the company money so they can push a crappy 25.24% CC onto the unwashed masses. They even print out a little "instant shopping pass" if your approved so you can blow that CL ASAP.

 However it took me a long time to find a job, I don't want to make a stink about it and end up loosing it. 

[Creditaddict]

So they don't offer employees any type of secured or small intro card?

does sears still work with (now) capital one I guess to counter a low level MasterCard when store card denied like best buy use to or does still?

[FixMyCredit1992]

Searscard is provided by Citi.

The "counter offer" card is provided by HSBC.

The main Sears store card and Sears mastercard are indeed backed by Citi. Sears started another program a few months ago. They noticed like 75% of all credit apps were denied by Citi. They wanted to strengthen their credit base, so they introduced Sears solution card. If you get denied by Citi, HSBC reviews the app. They are reporting that over 50% of previously denied apps will be approved this way. The terms are different and some have an AF. I think you might get hit with an extra hard INQ though. I also think it must be done instore, not over the internet. I got this information from working for Sears.

[Creditaddict]

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@FixMyCredit1992 wrote:

Searscard is provided by Citi.

The "counter offer" card is provided by HSBC.

The main Sears store card and Sears mastercard are indeed backed by Citi. Sears started another program a few months ago. They noticed like 75% of all credit apps were denied by Citi. They wanted to strengthen their credit base, so they introduced Sears solution card. If you get denied by Citi, HSBC reviews the app. They are reporting that over 50% of previously denied apps will be approved this way. The terms are different and some have an AF. I think you might get hit with an extra hard INQ though. I also think it must be done instore, not over the internet. I got this information from working for Sears.

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HSBC is not around though anymore no??

and Sears solutions MasterCard came out years and years ago... I had it!

you didn't get counter?

[SunriseEarth]

How long ago was this?

Some employers do pull CRs as a cheap form of background checking, but making someone apply for credit seems to be a real stretch.  What if someone is buying a home, in BK proceedings, etc.?   I would send a complaint to your state's Attorney General office, as this practice strikes me as highly questionable.  

[Skye12329]

I also work at Sears, but they never made me apply for a card, i did however apply on my own for the MC and was approved when i first started working there. At the time though i didnt know how credit worked XD but no they cant force you to apply, it was rude of the HR to force you.