topic Unauthorized Credit Check in General Credit Topics

Unauthorized Credit Check

Anonymous — Thu, 10 Mar 2011 23:08:18 GMT

I filled in the fields of an online order form on the local telephone company's website. The order was canceled before I finished though, and I don't remember giving consent for them to open my credit report. I did not "submit" approval for this. Still, at 2:30AM that morning, they opened my report.

Is this ethical?.. Legal? I understand curiosity but shouldn't they have had permission before they look at my information.

Thank you in advance for any insight.

Re: Unauthorized Credit Check

RobertEG — Sat, 12 Mar 2011 13:22:06 GMT

The issue is whether or not you initiated a business transaction with them. That would give them a permissible pull under FCRA 604(a)(3)(f).

In my opinion, if your order was not completed, you did not fulfill the intiatiation of a business transaction with them, and the credit inquiry would have been impermissible.

The FTC has addressed this similar issue for credit pulls by auto dealers. Their opinion letter stated that until such time as the business transaction reaches commitment to purchase, it is not a business transaction under the meaning of FCRA 605(a)(3)(f). See FTC Opinion Letter dated 2/11/1998 under opinions regarding FCRA 604(a)(3)(f).

Re: Unauthorized Credit Check

Imhotrodcrazy — Sat, 12 Mar 2011 17:47:44 GMT

@Anonymous wrote:
I filled in the fields of an online order form on the local telephone company's website. The order was canceled before I finished though, and I don't remember giving consent for them to open my credit report. I did not "submit" approval for this. Still, at 2:30AM that morning, they opened my report.

Is this ethical?.. Legal? I understand curiosity but shouldn't they have had permission before they look at my information.

Thank you in advance for any insight.

I had a similar situation with Scottrade. I started an online app but decided not to go through with it. When I tried to back out of it, it would not let me do so. I shut down my computer to get rid of it, but the next day I had a hard pull on my report, even though I had not completed, or "accepted" their terms. I called Scottrade and they said they could not do anything about it. When I disputed it with TU, it was removed from my report.