topic Re: Auto approve inquiry help!!! in Rebuilding Your Credit

Auto approve inquiry help!!!

Anonymous — Wed, 06 Sep 2017 17:40:04 GMT

This auto approve company ran my credit without my permission. I was on lending tree doing estimates and this auto approve company came back and told me I was approved for refinance ! Great! But next thing I know there is hard pull on my credit now..... I did not ask them to run a full check on me nor did I give permission!!!!!

Help!!!! How do I get them to remove it????

I emailed them and asked them hours ago but lo and behold they did not respond! !!

Help please!!!!!!!

Re: Auto approve inquiry help!!!

RobertEG — Wed, 06 Sep 2017 17:53:06 GMT

Below is a discussion of the generally-accepted criteria for when an auto dealer obtains permissible purpose to pull a consumer's credit report. It was provided in an FTC staff opinion dated February 11, 1998, and available on the FTC web page.

"Section 604(a)(3)(F) permits CRAs to provide consumer reports to any party who has a "legitimate business need for the information in connection with a business transaction that is initiated by the consumer." You ask whether this provision allows a dealer to obtain a consumer report on a person who "comes to an automobile dealership and requests information" from a salesman about one or more automobiles. In our view it does not, because a request for general information about products and prices offered does not involve a business transaction initiated by the consumer.

"More generally, you ask "when is the beginning of a business transaction" initiated by the consumer? In responding to this question, it is important to note that Section 604(a)(3)(F) limits this "business need" permissible purpose to transactions (i) that are "initiated" by the consumer and (ii) where the seller has a "legitimate business need" for the information. The staff's view is that an automobile dealer may obtain a report only in those circumstances in which the consumer clearly understands that he or she is initiating the purchase or lease of a vehicle and the seller has a legitimate business need for the consumer report information in order to complete the transaction.

"For example, a consumer who asks a dealer questions about prices and financing is not necessarily indicating an intent to purchase or lease a vehicle from that particular dealer. Nor does the dealer have a "legitimate" business need for a consumer report in this situation. The consumer may simply be comparison shopping. In such a situation, the dealer must obtain written permission from the consumer before obtaining a consumer report. If the dealer would like to see a consumer's credit report before answering general questions about the availability of financing, this must be explained to the consumer and written permission must be obtained. In the same way, a request to "test drive" a vehicle does not indicate an intent to initiate the purchase or lease of the vehicle. Accordingly, if a consumer asks to test drive a vehicle, the dealer must obtain written permission from the consumer before obtaining a report.

"Only in those circumstances where it is clear both to the consumer and to the dealer that the consumer is actually initiating the purchase or lease of a specific vehicle and, in addition, the dealer has a legitimate business need for consumer report information may the dealer obtain a report without written permission. In this regard, we note that obtaining information for negotiation purposes does not constitute a "legitimate" business need. The dealer must have a specific need for the information directly related to the completion of the transaction. For example, a dealer may obtain a report, if one is necessary, in order to arrange financing requested by the consumer.(1) The dealer may also obtain a report to check a consumer's creditworthiness when the consumer presents a personal check to pay for the vehicle. By contrast, a permissible purpose would not arise if a consumer intends to pay by cash.

FCRA 819 specifies that a party who knowingly and willfully obtains information from a consumer reporting agency under false pretenses shall be fined under Title 18, United States Code, imprisoned for not more than 2 years, or both."

Re: Auto approve inquiry help!!!

Anonymous — Wed, 06 Sep 2017 20:35:52 GMT

OK wow that was every bit above my head. So is there a way to get this company to remove inquiry since I was only fishing to see what estimates I might get for a refinance and did not accept any offer???

Re: Auto approve inquiry help!!!

RobertEG — Thu, 07 Sep 2017 17:54:20 GMT

In a nutshell, if you never entered into an agreement to actually purchase or lease a vehicle (as described in detail in the FTC advisory letter), and thus they had no actual business transaction upon which to also assert a legitimate need to review your credit, then you can file a dispute with the CRA contesting the inquiry.

If the CRA then denies the dispute, you can file civil action and challenge the CRA ruling in court.

That will likely be the outcome, as the CRAs rather routinely verify the accuracy of any reported inquiry.

By the time you receive judicial review, the one year period for inclusion of the inquiry in your scoring will likely have passed, which essentially renders the ultimate removal kinda moot. Your choice as to whether or not to pursue.

As an alternate to civil action, you might also choose to file a formal complaint with the CFPB.

However, unless your complaint clearly establishes factual violation of the FCRA (i.e., does not involve interpretation of evidence), the CFPB willl likely not intiate its own civil action, and thus you might still need to bring your own civil action.

I would advise the CFPB route, only because it is more likely to be resolved within one year.