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this does sound very sketchy.
You should find out of this is indeed a company policy, or just your local store's / manager's / trainer's policy. If it isn't a companywide policy, file a complaint with HR.
Ultimately, its up to you though. If you pursue this and make a big deal out of it (even though it should be if this isn't company policy), it may affect your job.
@Creditaddict wrote:
@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.
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?
Actually HSBC quit and it switched to Orchard bank which is no longer considered Sears, now Sears offers Barclays occasionally but only if CITI Bank cant approve you.
@FixMyCredit1992 wrote: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.
Interesting. Many years ago, when I was a teenager, no income, absolutely no qualifications at all, I remember I let a Sears salesman talk me into applying for a Sears card. I would guess I was 16 at the time. Not knowing anything about hard pulls and credit reports, I went along with it, not really taking it seriously. As expected I was insta-declined for lack of credit history. I forgot all about it, but your comment brought that old memory up from the archives. I guess it was inconsequential in my case, because I never made a "real" credit application until like 10 years later. But I should have refused.
There was no chance of me being approved but maybe it saved the guy's job.
I, Personally, would have a big problem with this.
I think that particular trainer was doing everything he/she can to cash in on the bonus of getting people to sign up.
If anyone should be fired, it should be the trainer.
@WolfMan wrote:I, Personally, would have a big problem with this.
I think that particular trainer was doing everything he/she can to cash in on the bonus of getting people to sign up.
If anyone should be fired, it should be the trainer.
True. I know for fact that it is not Sears's standard to have new hire must go through this process of app for Sears card. In this case the trainer was looking for his/ her own gain unethically.
@Platinum wrote:
@WolfMan wrote:I, Personally, would have a big problem with this.
I think that particular trainer was doing everything he/she can to cash in on the bonus of getting people to sign up.
If anyone should be fired, it should be the trainer.
True. I know for fact that it is not Sears's standard to have new hire must go through this process of app for Sears card. In this case the trainer was looking for his/ her own gain unethically.
In complete agreement.
Highly questionable practise, unless they state somewhere UP FRONT in the application process that obtaining a SearsCard is a condition of employment. The fact that the trainer made a STATEMENT that you, the employee, would now apply for a card, rather than ASKING if you want to apply for a card, seems very unethical. If I were in the OP's shoes, I'd contact someone at the corporate level to see if this is standard practise. Also, posing the question on Sears' Facebook account, or Twitter account may also get some interesting responses as well, either from the "suits" or from other unsuspecting employees or former employees.
As everyone else has said, that's very unethical and I would report it to corporate. Also, as a general rule, store cards have horrible APRs and low CLs. I have cards with good rewards and credit limits (for my use, anyway) that I don't think I'd consider applying for a store card (except maybe the Target card, but the low CL makes me think otherwise).
Definitely bring it up with corporate. I would have pushed harder on applying for one, though. Under no circumstance would I have applied for a Sears card. I likely would have quit the job first. I've worked for 5 years to get to where I am today, if they can't respect that, then they're not a place for me.
The legality of the practice is determined by the State.
For instance, in CA, the practice of requiriing a person to buy an employer's product or service as terms of employment is illegal. So, you can check with your State regarding the practice.
As to complaining, whether the practice is illegal or not, and even though punitive reponse is strictly prohibited, it retribution happens all the time in a corporate environment. From my perspective, if you work for me, and complain about having to use my product (especially if it's free and beneficial to you), I may not respond with punitive action, but you will surely *never* be promoted beyond where you are for so long as I run things.
So, as they say, there are times when discretion is the better part of valor.
@Open123 wrote:The legality of the practice is determined by the State.
For instance, in CA, the practice of requiriing a person to buy an employer's product or service as terms of employment is illegal. So, you can check with your State regarding the practice.
As to complaining, whether the practice is illegal or not, and even though punitive reponse is strictly prohibited, it retribution happens all the time in a corporate environment. From my perspective, if you work for me, and complain about having to use my product (especially if it's free and beneficial to you), I may not respond with punitive action, but you will surely *never* be promoted beyond where you are for so long as I run things.
So, as they say, there are times when discretion is the better part of valor.
To me, taking a hard credit pull as part of the terms of employment, and the hit to AAoA, both of which need to be carefully considered before applying for any credit, especially credit you weren't planning on applying for in the first place, and may or may not have benefits to you directly, is reason enough to complain. When I apply for credit, I factor how much a new credit card will benefit me (ie rewards, interest rate, etc) vs the negatives (hit to AAoA and hard pull). Everybody else should look at this when they apply for credit, too.