Every month Capital One pulls my credit report under what the FCRA terms a "periodic review." This allows Capital One to access to my credit report without conducting an "inquiry." Inquiries are used in the statistical measure of "credit scoring." This discriminatory analysis of ones credit worthiness is partially based on how many people have accessed your credit file (the assumption is that the only reason to access you file is based on an application that you have initiated). The problem is, CRA's disseminate your credit file to anyone, and in many cases, without your knowledge and permission.
I have a Capital One Gold card, and to be honest, my experience with Capital One up to this point has been favorable. However, I have been bombarded with offers for a "Platinum Card" over the last couple of weeks. Based on my knowledge of the discriminatory nature of credit scoring associated with "risk-based lending" practice, I authored a letter to Mr. Peter A. Schnall, Executive Vice President & Credit Officer for Capital One Services. I sent it registered mail to document the evidentiary claim for future litigation purpose.
In short, I informed Mr. Schnall that if Capital One wished to provide me with a "Platinum Card" then thats fine. However, under no circumstance did I authorize Capital One to conduct a credit "inquiry." The solicitation that I attached to the letter did not bear my signature. I stated that if Capital One agreed to make the "credit decision" based on the ability to access my credit file under a "review", as opposed to an inquiry, and then they were to return my solicitation for a signature.
Four days after receiving my letter, Experian sent me a notification under their "credit watch" service (also known as credit expert) that Capital One made an inquiry into my Credit report, in direct violation of ECOA. Furthermore, the access of my credit file was fraudulent because they were in direct violation of my "written instructions" as defined under the FCRA.
Subsequently, I have received my Capital One Platinum Card but the only use for it is evidence against them when I file civil action against them in the Court of Common Pleas here in Cincinnati, OH.
Just as I suspected, my credit score dropped 22 points based on their inquiry alone. What made it worse is that I dropped to the "moderate risk category." That may have just torpedoed a home equity revolving line of credit I was preparing to get.
Their actions in this matter are no different then any other crooked company accessing a credit file under false and fraudulent pretenses.
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