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.