Permissible Purpose Inquiry

Discussion in 'Credit Talk' started by vectorz, Jan 15, 2002.

  1. vectorz

    vectorz Well-Known Member

    Got a letter today from Experian saying that even though I'm requesting proof for my signature on these inquiries, that it is 'permissible inquiry' , and completely allowed, according to the Fair Credit Reporting Act. How's this so? If I don't authorize an inquiry, anyone's allowed to view my credit?

    Here's a perfect example. Friday I signed up for Arrowhead water. The lady asked for my SS#, I said "no, I do not want you to check my credit". She continued taking my order, and I specifically said at the end of the conversation "Just to clarify, you will NOT be running my credit report, correct?" and she said , "Correct". Hung up the phone, checked this morning, BAM! -- a new inquiry.
     
  2. Pat

    Pat Well-Known Member

    I would call back and speak with the same lady from Arrowhead and tell her that she violated the FCRA (maybe?) and that she had better speak with her finance department and have it removed. Drop the "threat" that you'll be forced to file complaints with the FTC, BBB and Attorney General if they don't comply!

    I've also been informed recently by TU that I don't have to give express consent in writing to make it a permissable purpose.

    Here's a link to the FCRA section on permissable purpose:
    § 604 Permissible purposes of consumer reports
     
  3. mike101

    mike101 Well-Known Member

    I would take Pat's advice, but send a Cert.RR letter and then call. This gives you a little more documentation and I think makes them realize that you are serious.
     
  4. breeze

    breeze Well-Known Member

    I am going through some training on how to use Choicepoint - it pulls credit, DMV report, and CLUE (insurance claims) report - for insurance applications.

    The instructor mentioned "if you pull someone's report check very carefully to make sure the DOB, SSN, and full name are correct."

    A discussion followed, and another class participant said, "so if I pull a report and it shows incorrect information, and I go back and check, and see that I entered the SSN incorrectly, what do I do?"

    The instructor said "close the file you're working in, re-open it, and re-enter the SSN correctly, and you should get the right report."

    I asked, "what about the other person, the one whose report got pulled by mistake? Is there any way to remove that inquiry from their credit report?"

    She said "don't worry about it."

    I said "but you have to have permissible purpose to pull someone's credit report."

    She said,"don't worry, it doesn't hurt anything."
     
  5. GEORGE

    GEORGE Well-Known Member

    You can dispute it..."I DID NOT APPLY FOR THE ARROWHEAD WATER CREDIT CARD".

    IT'S JUST WATER...they are NOT sending a WASHER AND DRYER OR FREEZER!!!

    You DON'T pay one month...next month you get NO WATER!!!
     
  6. breeze

    breeze Well-Known Member

    Oh, and a word of warning - your credit report can be pulled with name and address only.
     
  7. vectorz

    vectorz Well-Known Member

    just read this FCRA section on permissable purpose. If I read it correctly, it's completely vague and allows the CRA to state ANY inquiry as 'permissable purpose', and there's no real way to fight it. Here's the important part:

    "(3) To a person which it has reason to believe

    (A) intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer; or
    "

    So basically, this means they can give a 'permissable purpose' as a reason for ANY of the inquiries you dispute, because they can say that they think the person wanted it for credit purposes (duh). How absolutely ridiculous is this? Even if you don't authorize it, they can give out your information to as many people you want , and you can never prove otherwise.
     
  8. VJ

    VJ Well-Known Member

    The FTC, in their rectal-cranially inverted Landover Staff Opinion Letter states," The submission by the consumer of an application for credit gives rise to a permissible purpose to obtain a consumer report under Section 604(a)(3)(A) of the FCRA. Our answer to this inquiry is not dependent upon the method by which the consumer applies for credit. So long as the application is in connection with a bona fide credit transaction, the requirement for a permissible purpose under Section 604(a)(3)(A) is met. .....the "written instructions" requirement of Section 604(a)(2), is unnecessary in terms of FCRA compliance because submission by the consumer of an application for credit supplies the permissible purpose under Section 604(a)(3)(A)."

    That being said,I would send a dispute with a list of FCRA violations to the company (RR) demanding the removal of the inquiry because:

    1)In the course of discovering unacceptable account terms while asking questions and shopping for the best deal and products, the application for credit was terminated without your completion, acceptance or submission and therefore, a permissible purpose to access your personal credit file did not exist.
    2) The incomplete, non-submitted and aborted application was used by their company to access your credit files under false pretenses(fraud?), without your consent or knowledge, in direct violation the FCRA's.

    VJ
     
  9. Pat

    Pat Well-Known Member

    vectorz,
    That's why you need to go after the creditor who put the inquiry there. The CRA's are all over the board on inquiry disputes.

    Some people get 10, 20 or 30 deleted in a single dispute. Others (like me and you) get verified or we don't dispute inquiries or they're a matter of fact, blah, blah, blah, on a dispute of 1 inquiry.

    Odds are your water company finance guy won't know of, or be versed in the FCRA. So a call, or better yet a letter, like mike suggested. Letting them know they violated the FCRA, that they had no permissable purpose to pull because you specifically demanded multiple times that they not pull your credit file. And that if they don't remove the inquiry, you'll complain to whomever will listen, and perhaps if necessary followup with a small claims suit. That might entice them to remove.

    But you never know :)
     
  10. vectorz

    vectorz Well-Known Member

    VJ,

    THanks for this info. I'm still a bit unclear. So what you proposed is that I say since I did apply for this credit, yet I decided to cancel the application, it is no longer a 'permissible inquiry'?
     
  11. Hermit5

    Hermit5 Well-Known Member

    Thanks Breeze. Good to know.
     

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