Credit Card Center Advertiser Disclosure†
10-16-2013 09:18 AM
That small print is only advisory, and included as a good business practice. It is not required, as your pre-authoriization of their inquiry is not required.
When you intitate a business transaction, even if not related to any extension of credit, if the business has a legitimate need to review your credit as part of that transaction, they have specific permissible purpose under FCRA 604.
The purpose of the permissible purposes llisted in section 604 is to permit business and credit transactions to be carried out without the need to obtain express consumer pre-authorization of their review of your CR.
If you had only purchased a phone, there would be no legitmate business need to review your credit.
However, if you were also applying for service, that carries with it the possiblity of consumer default/debt on their account, that gives rise to a "legitimate business need" to review your credit.
I love RobertEGs explanations!
10-16-2013 09:40 AM
Makes sense, thanks Robert.
I had a delinquency with Verzon Wireless back in 2005 which is now resolved. So perhaps my name raised a red flag and they deemed it a requirement to review my history.
01-04-2014 01:29 PM
Just wanted to add to this because I know a very arrogant, smug, punk of a salesman is going to be Googling when he gets home tonight. I just left the Naples FL store on Pine Ridge road. I walked in, was greeted by this person, told him I needed a phone plan and a phone but didn't want to put any money down. I also asked if my last credit check was still valid since I just did this mid September. He said we'd have to do another check, but it's not a hard inquiry. I told him it was a hard inquiry and I can show him right now that on my Equifax report it shows it under "Hard Inquiries". He blew it off and we went through the process. He said I qualified for any phone in the place with no money down, but didn't qualify for verizon edge. Ok, no problem at this point. After we chose the plan and got everything said and done, he said my total will be $299.99 for the phone. I reiterated what I said when I walked in and not only that, but what he told me with "any phone in the store with nothing down". He again shrugged it off. I ignored it and simply asked how long is this application valid because now I'll 2 hard inquiries on my report just from Verizon Wireless and don't want a 3rd, but now need a week to get the $299. Again he stated, and very aggravated "Look, we DON'T do a hard inquiry!". I told him to bring me to a computer with internet access right now and I'll show him my hard inquiry from my last application Sept 2013. He wouldn't and just argued. I said I'm rebuilding my credit so know exactly what's on there. He cut me off and said "We only do soft inquirries, I'm not going to argue about this anymore". He walked away, I caught up with him and told him quite loudly to get his manager. I was ready to rip him in half. Manager came over and I explained what the argument was about (well, he was the one arguing above speaking voice). Soon as I started explaining the manager said "No, we don't do hard inquirries". Again I told him that I can bring in my report or show them right then and there if they let me use a tablet with internet. He of course quickly dropped it and just said; "well forget about that, what's this all about?".
I'll stop there since the rant can go on for another few paragraphs but my point is this. If you ask any verizon wireless agent on the phone or via chat, they will tell you "YES" this does a hard inquiry. After you get a plan, or put in for one, you'll even see this. Don't listen to salesman in at least the Naples office because they not only will argue over it, they'll walk away from you if try to prove that it does. If anyone knows how to reach someone high up in the higher echelon of Verizon, please let me know. I never wanted to take action against an employee anywhere until today and not looking to get him fired, but want his bosses - bosses to fill that store in on the truth and get an apology over his behavior.
PS. One more thing to add. I chatted with a VW rep right before I headed to the store. I had questions about a couple phones but ended with a quick question on which credit agency they pull from. She said Experian (after a long delay). That didn't sound right and I had a couple reports just a week old here on myFico (the other two, not Experian) and checked them. It wasn't Experian, it's on my Equifax report as a Hard Inquiry. Name = Verizonwir
01-04-2014 07:12 PM
I think you'll find that most cell-phone apps result in an inquiry, regardless of past business dealings.
Until recently, my ex and I had a cell phone, and they were under her name. When we split up, since I was making the bill payments, it was wise to also "split" the lines as well. I went to the sprint store and sure enough, they HP my credit and to this day, it is still there, and will remain there for 2 years (Oct 2013 - pull date).
As much as I hate the fact that it is an HP that they do, I can understand the legitimate reasons behind it. As Robert so eloquently explained, there is a legitimate business reason for doing so.
01-04-2014 10:05 PM
Never said there wasn't a reason for it, never even said it bothered me one bit actually. Think you missed my comment. To save you the trouble, I was talking about the salesman saying they didn't over and over again even when I had proof. He walked away from saying he wasn't going to argue about it and I was wrong, etc, etc. Anywho, you missed every word I said. No biggy, it served it's purpose,,, as I said.