Can they do this??

[gramps1968]

I received a loan invitation from Citi Financial(one of those ones that look like a check) I wanted to inquire more about it. I started to give the woman over the phone my information and then decided to think about it some more. I told her to put everything on hold. Today, about 10 days later, I got a letter from Citi denying my application. I never gave them approval to put my application through.

I called the office and the woman said that their computers "automatically generate" a credit report once they have all my information. I NEVER gave authorization to have my credit report pulled. Can they do this without my permission? I have enough inquiries on my credit reoprt. I'm livid....please tell me what I can do and any action that I can take against them-if any. Thanks for any advice.....

[CreditBob]

Just go ahead & start the dispute process

[gramps1968]

Do you mean the dispute process with Experian? I probably need a copy of the report correct?

[Anonymous]

You can get a free copy ofyourcredit report for dispute purposes at the experian website.  I would make sure I added that I never applied for credit with them.  You are right, they have no right to pull your credit without your actual application for credit.  Seems like the rep wanted her commission and hit submit to fast.  FWIW, NEVER give you info unless you plan on going through with it.  I haveseen this happen mor than once.

[SmartCookie]

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=3900

Send them a non-authorized INQ letter and offer to settle for $500 instead of dragging them to court.  You might want to write a letter of complaint to the AG and/or FTC... and Citi Financial.

For the future though, never trust any rep who says that your SSN will not be used to apply for something.  It shouldn't have to be that way, especially with a major company, but it is.

[gramps1968]

Thank you for the letter outline SmartCookie. I have a feeling I will be using it.

Can someone please answer this for me though......

I did give the rep all of my personal info for the application-including my SSN. However, after giving this info I specifically told her to put the application on hold until I could think it over some more. I was NEVER asked for permission to pull my credit report nor did I authorize it. I NEVER told her to process the application either. Is my voluntary offering of the info an implied agreement on my part to proceed with the application or do they need to actually ask me for my permission to proceed with it?

Thanks again for all the great info....Mike

[SmartCookie]

There has to be some sort of disclosure that it is an application for credit and your SSN will be used to access your credit info.

It may have been on the paperwork you got with the check, but if not, the rep needed to give you the disclosure verbally.

As soon as you gave the rep your SSN, your info was accessed since you were calling the application number.  They should have told you it was too late to put the app on hold at that moment just to be honest.  They also should have stopped the entire situation from happening if you started the call telling them you just wanted info, and later said hold on to it all you will call back... unless you at some point said 'ok that's great I want to apply then'.

[Anonymous]

What's the likelihood of them ponying up the $500?  I noticed everybody on myfico tends to play hardball with these companies.  Any successes?

[haulingthescoreup]

BTW, gramps (Mike), this loan would show on your FICO scores as a consumer finance loan, and it lowers your score. The thinking is that they are used by desperate borrowers who can't get credit anywhere else, which I think is pretty absurd. I accepted a mailer from Wells Fargo Finance almost 2 years ago and paid it off in 7 months --barely had to pay any interest at all, considering.

But at any rate, they're worth avoiding in the future, if you can possibly help it. I haven't gotten any rude remarks about it on my score reports, but that's because they're too busy scolding me about my lates instead!

[gramps1968]

Thanks again for all of the replies. I have already contacted my local attorney generals office and will file a complaint thru them. I called the FTC and they suggested I call the NYS Banking Authority since they regulate them. I'm still mad as hell about this and I very well might follow this thru as far as I can take it. At the minimum, I want the record removed from my CR. I'll keep you all posted if anything interesting happens.   MIKE