Has anyone had a credit check for a rental application show up as an application for a mortgage?

[Rattcoon]

My landlord (a person) ran my credit check to rent a home as a mortgage application. She is a real estate broker in addition to owning homes with her husband. This was run through her company she works for, FHA, who in turn ran it through CBC Innovis. I understand this would be fine if it were a mortgage application, but it was for a rental. All contracts that I signed are with her as an individual not her company.

She used a lease agreement that also had her companies name on them, which at the time I thought whatever, they might just come that way if printed through her work. I am a detail oriented person and in addition to mentioning that to the husband, who was who I signed the lease with, I crossed out all items listing Frank Howard Allen and made him replace that with his name.

My score is 767 and it might not affect it very much, but to me it is a matter of principle since I tried to ask nice for her to resolve this.

I appreciate any help and feedback on what monetary or other recourse I have, if any. Also, if I should send in a non-permissible purpose letter.

Below is a copy of the inquiry from Experian:

CBCINNOVIS

Address:

PO BOX 1667

PITTSBURGH PA 15230

No phone number available

Date of Request:

06/18/2013

Address Identification Number:

0194300839

Comments:

Mortgage on behalf of 620 FHA. This inquiry is scheduled to continue on record until Jul 2015.

[RobertEG]

A party is authorized to pull your credit report without prior permission if you have initiated a business transaction with them, and that business transaction gives rise to an associated legitimate business purpose for them to review your credit.  FCRA 604(a)(3)(F).

Apartment/home rental has the legitimate business possibility of the tenant becoming in arrears, and thus is generally recognized as a legitimate business purpose.

Thus, she had a permissible purpose.  While she may have provided the incorrect permissible purpose when making the inquiry, I doubt that she knowingly misreported inaccurate information, and it could easily be corrected.

You could contact the CRA, challenging the stated permissible pupose, but since she had a permissible purpose, she did not falsely receive a report that she was not entitled to.  Personally, I would not pursue it.  A no-harm mistake.

[Rattcoon]

Thanks for your input. The section in the application to rent where we sign and I allow this specifically says "To receive a credit report". Since it is shown as if I applied for credit though, this is treated differently then if I am applying to rent. I say this because I am now looking to get a mortgage. This inquiry shows up as if I already applied for one back in June, as opposed to my previous application to rent from my old address, which specifically shows as a credit check for a rental unit. Also, it was not an honest mistake on her part. I mentioned this to my neighbor and it is also on their credit reports. It is because she is running it through her work. I did not give Frank Howard Allen Realtors permission for anything.

[RobertEG]

You could always file a dispute with the CRA, stating that you did not app for a mortgage with the requestor, and thus their inquiry was not for any such purpose..

Dont send a direct dispute to her, as issues relating to credit inquiries are specifically excluded from the direct dispute process.

I would not cloud the issue by mentioning that she did have a business permissible purpose, and the CRA will conduct a reinvestigation of that specific issue.

As for not having authorized her to pull, she did not need an express authorization.

Permissible purposes under section 604 are listed in order to permit the easy conduct of credit and business inquiries without need for express consumer approval.

[Jstic]

Is he/she the owner of FRANK HOWARD ALLEN? If not, I wonder if her employer authorizes her to use their name as a credit report pull, and also wonder if they know they are paying for the report she pulled to rent one of HER properties.

From a legal standpoint, FRANK HOWARD ALLEN would be foolish to allow an employee to order credit reports using their trade name as it opens up all kinds of legal liabiltiy problems. The situation you describe is EXACTLY why I would not allow it as a business owner/operator.

Technically, it sounds like you have them on the legal aspect. But I don't know how much relief you could get from a court, you haven't really been harmed by it as they would have pulled your credit anyway, right?