Verbal authorization for inquiry?

[Anonymous]

A couple months ago I was speaking to a mortgage guy, he sent me a list of documents to send him and a form that I would need to sign in order to give him permission to pull my credit. I did send him some of the docs he was requesting but never did sign that form for authorization of an inquiry. I later see that he went ahead and pulled my credit. Can he do this? He said he had verbal authorization....is this allowed? Why bother giving me a form to sign if you were going to run my credit anyway...

[RobertEG]

It is simply a precaution to remove any issues.

The FCRA is structured such that if a given situation is identified under FCRA 604 as a permissible purpose for obtaining a consumer's credit report, then there is NO need to obtain the consumer's express authorization.  Otherwise, conducting review of apps for new credit would come to a standstill.

Express consumer authorization always permits a pull, regardless of whether there is already a permissible purpose under one or more of the conditions specified in section 604.

Lack of consumer express authorization is only an issue if the party does not otherwise have a clear permissible purpose.

If you have initiated a request for credit or insurance, which appears to be the situation, then that is a clear permissible purpose identified under FCRA 604, and no express authorization is additionally required.

That does not, however, preclude the party from also obtaining express authorization.

[Anonymous]

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@Anonymous wrote:

A couple months ago I was speaking to a mortgage guy, he sent me a list of documents to send him and a form that I would need to sign in order to give him permission to pull my credit. I did send him some of the docs he was requesting but never did sign that form for authorization of an inquiry. I later see that he went ahead and pulled my credit. Can he do this? He said he had verbal authorization....is this allowed? Why bother giving me a form to sign if you were going to run my credit anyway...

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It sounds like there was a miscommunication. You should write him a letter stating that you were just feeling out the situation and not ready to apply, and thus did not give him permission to pull your credit, and that you would like the inquiry removed.

[RobertEG]

The issue would then become whether your prior communication with the creditor included your "initiation of a request for credit," or was only an informal request for info.

The prior provided permissible purpose, while the later does not.

[Anonymous]

Well, yes, clearly the creditor thought he had permissable purpose, but the consumer didn't intend to give that impression.

Not saying the mortgage guy has to remove it, obviously it's his word vs OP's, but he can certainly read a letter and do so if he feels so inclined.

Silly to involve a third party of a simple misunderstanding.