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Senior Contributor
Noah_Bodie
Posts: 4,635
Registered: ‎03-11-2007
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Re: What kind of scam is this? Tuscani, TNWM, Noah?



masdeocho wrote:
 
And I guarantee you that the Feds will find a compelling argument that it does violate the letter of the law.


Unless and until AU rental becomes a violation of law, it ain't happening. I suspect AU rental companies will continue to do business well after all 3 CRAs adopt FICOs no credit for AU TLs.
 
FCRA doesn't address AUs at all. It's always been a lender by lender hit and miss benefit. Since the benefit is ending, I wouldn't count on AU prosecutions ever beginning.
 
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Tuscani
Posts: 6,182
Registered: ‎03-29-2007
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Re: What kind of scam is this? Tuscani, TNWM, Noah?

[ Edited ]


Noah_Bodie wrote:


masdeocho wrote:
 
And I guarantee you that the Feds will find a compelling argument that it does violate the letter of the law.


Unless and until AU rental becomes a violation of law, it ain't happening. I suspect AU rental companies will continue to do business well after all 3 CRAs adopt FICOs no credit for AU TLs.
 
FCRA doesn't address AUs at all. It's always been a lender by lender hit and miss benefit. Since the benefit is ending, I wouldn't count on AU prosecutions ever beginning.
 


One could certainly still use the FCRA as leverage. According to section 603 of the FCRA, only information on credit issued to a consumer is allowed. If you are an AU, you do not fall under these categories, you are not responsible for the debt and did not receive credit. An AU doesn't have credit on this account and it's only the signor that is responsible. So, in essence, if an account on which you are an AU shows up on your report, it would be someone else's credit (the signor on the account).


Message Edited by Tuscani on 06-11-2007 08:39 AM
New Member
maple
Posts: 15
Registered: ‎06-05-2007
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Re: What kind of scam is this? Tuscani, TNWM, Noah?

One could certainly still use the FCRA as leverage. According to section 603 of the FCRA, only information on credit issued to a consumer is allowed. If you are an AU, you do not fall under these categories, you are not responsible for the debt and did not receive credit. An AU doesn't have credit on this account and it's only the signor that is responsible. So, in essence, if an account on which you are an AU shows up on your report, it would be someone else's credit (the signor on the account).


Message Edited by Tuscani on 06-11-2007 08:39 AM


What part of 603 are you referring?
Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007
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Re: What kind of scam is this? Tuscani, TNWM, Noah?

According to section 603 of the FCRA, only information on credit issued to a consumer is allowed. If you are an AU, you do not fall under these categories, you are not responsible for the debt and did not receive credit. An AU doesn't have credit on this account and it's only the signor that is responsible. So, in essence, if an account on which you are an AU shows up on your report, it would be someone else's credit (the signor on the account). Here's the exact text to which I refer:
 
FCRA Section � 603. Definitions; rules of construction [15 U.S.C. 1681a] (what credit lines can be reported).
(l) Firm offer of credit or insurance.
The term "firm offer of credit or insurance" means any offer of credit or insurance to a consumer that will be honored if the consumer is determined, based on information in a consumer report on the consumer, to meet the specific criteria used to select the consumer for the offer, except that the offer may be further conditioned on one or more of the following:
The consumer being determined, based on information in the consumer's application for the credit or insurance, to meet specific criteria bearing on credit worthiness or insurability, as applicable, that are established
(A) before selection of the consumer for the offer; and
(B) for the purpose of determining whether to extend credit or insurance pursuant to the offer.
(2) Verification
(A) that the consumer continues to meet the specific criteria used to select the consumer for the offer, by using information in a consumer report on the consumer, information in the consumer's application for the credit or insurance, or other information bearing on the credit worthiness or insurability of the consumer; or
(B) of the information in the consumer's application for the credit or insurance, to determine that the consumer meets the specific criteria bearing on credit worthiness or insurability.
(3) The consumer furnishing any collateral that is a requirement for the extension of the credit or insurance that was
(A) established before selection of the consumer for the offer of credit or insurance; and
(B) disclosed to the consumer in the offer of credit or insurance.

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