CCB/BML Opened an account in my name with PayPal Info without consent

[funkiehouse]

BTW: Paypal requiring SSN & DOB is not for ID verification it is to be able to send you a 1099 if you exceed 20K in income or 200 transactions in a year...

 

I read that part too but look at the screen shot above. They say they are getting it for ID and they won't share it with anyone. So if they did this for a credit pull they didn't follow through on the line at the top, which is deceptive.

Edited April 18, 2014 by funkiehouse

[funkiehouse]

 

You'll notice the second line of that page says: if you decide not to confirm, you can use your bank account or credit card but when you click on the add credit card link (which is what I did to get to this point) it takes you to this page. So when it's a new account and you haven't confirmed already you can't add a card unless you confirm this info. This is the info BML used to open the account.

 

The other thing is that I already had entered my credit card info just to get the account activated.

 

I see they are weaving you into forms in order to get your DOB and last 4 social. And really once they have your name, address, zip, dob, and the last 4 of your social, they have you completely without getting the full social. They would need to confirm your full social, if you received over $20K of incoming payments in order to issue an IRS 1099-K.

 

As far as I understood, you should be able to sign up for paypal with only email, name, address, and a checking/debit/credit card on file. Maybe this has changed and they forcing everyone to give enough info for BML to activate and if you don't bob and weave well enough, then they stick you with BML and a credit pull. It's deceptive and dirty pool. I think the CFPB would have a field day with paypal and the stuff they do like payment holds, perhaps this issue is a new one as they are trying to stuff BML down people's throats. Paypal has been careful to skirt banking/money transmitter laws, just hanging out around the fringes of a quasi bank, so they don't have to comply with full banking regulations.

 

If you want to stir the pot on this type of behavior you could reach out to ecommercebytes.com and mention how new paypal accounts are getting tied into a credit check and signup for BML.

 

 

Yeah, that's exactly what they are doing since BML is a Paypal company. They are trying to keep up with Amazon. I would have NEVER done an app for that type of credit. I don't need it and it doesn't make sense for a consumer. I'm sure I'm WAY more sensitive because I have and am still going through credit repair. I'm not one to zoom through anything I fill out. I usually get timed out because I'm going through everything. I know they verified my ID because I have those $1 charges on my credit card before I got to the screen above. I even went back and started a new Paypal account to go through the steps again to see if I missed something and that it was my fault, but I couldn't find anything. I stopped at the screen above without finishing it. I then went and canceled the "test" account. Like I said earlier, I'm sure permission is buried in the print somewhere that lets them get away with it, but it's not something I tolerate. I can be real PITA that way. I've worked too hard to let anyone have their way with my reports any longer.

 

They are definitely trying to skirt around banking regulations but using a third party as the actual credit issuer. I'll check out that site you mentioned.

[shifter]

to be able to send you a 1099 if you exceed 20K in income or 200 transactions in a year...

I do that every year.

 

never gotten a 1099.

[policebox]

I think the most effective thing you can do is to take screen shots of the application process, detail in writing what you think is misleading or deceptive about them, and then file a complaint against them with the CFPB. I don't think a threat to sue them for a Truth in Lending violation will motivate them much, especially since they have already agreed to retract the account.

 

This has similarities to my thread about why wasn't the lack of sufficient disclosures found in a pay day loan mail solicitation I received a violation of Truth in Lending. They are probably able to skirt the act because they are using state regulated lenders rather than federal ones. But in your case, with Comenity being the lender, why aren't they required to put up the boiler plate disclosure of the terms and conditions, just like in every other credit card application I've seen? I'm sure if one of those had popped up on your screen, it would have grabbed your attention in a way that would have helped you to have avoided accidentally opting in to a credit application. It's my opinion, and I would think the law, that obtaining credit should require a positive action by a consumer rather than being something that could happen by failing to opt out of obtaining it. It's like 20 or more years ago when credit card companies could mail people fully open and active accounts, but even then it still required you to actually use the card to get the credit.

Edited April 18, 2014 by policebox

[codein]

 

to be able to send you a 1099 if you exceed 20K in income or 200 transactions in a year...

I do that every year.

 

never gotten a 1099.

 

 

It is actually 20K AND 200 transactions that will trigger a 1099-K. That is the rule for payment card processors. I think these 1099K began being issued starting two years ago. And of course, the IRS would like to see disclosure of payment card revenue, whether or not you are issued a 1099K.

[shifter]

I do fewer than 200 transactions.

[funkiehouse]

I think the most effective thing you can do is to take screen shots of the application process, detail in writing what you think is misleading or deceptive about them, and then file a complaint against them with the CFPB. I don't think a threat to sue them for a Truth in Lending violation will motivate them much, especially since they have already agreed to retract the account.

 

This has similarities to my thread about why wasn't the lack of sufficient disclosures found in a pay day loan mail solicitation I received a violation of Truth in Lending. They are probably able to skirt the act because they are using state regulated lenders rather than federal ones. But in your case, with Comenity being the lender, why aren't they required to put up the boiler plate disclosure of the terms and conditions, just like in every other credit card application I've seen? I'm sure if one of those had popped up on your screen, it would have grabbed your attention in a way that would have helped you to have avoided accidentally opting in to a credit application. It's my opinion, and I would think the law, that obtaining credit should require a positive action by a consumer rather than being something that could happen by failing to opt out of obtaining it. It's like 20 or more years ago when credit card companies could mail people fully open and active accounts, but even then it still required you to actually use the card to get the credit.

 

Thanks. I do have some screen shots that I plan on including in my complaint. There was no warning what so ever that they were pulling a credit app.

[virtualtreasure]

Of course there's validity to the concern of not leading an unsuspecting applicant into debt.

 

However, it is a hidden TL and they are generally known to be responsive to requests (thanks but no thnks) for removal of HP or it can be B* so ultimately there's not much damage to speak of FWIT.

[funkiehouse]

Of course there's validity to the concern of not leading an unsuspecting applicant into debt.

 

However, it is a hidden TL and they are generally known to be responsive to requests (thanks but no thnks) for removal of HP or it can be B* so ultimately there's not much damage to speak of FWIT.

 

Thanks and I understand what your saying. The problem is the fact that it is a hidden TL. I know that people are enjoying using it don't care, but that's part of the deceptive practice and does nothing for the consumer, it just makes them money. The hidden TL is exactly why no one speaks up. If they did report it you would hear a lot more about it from people or if they said we're pulling your credit to issue you a "credit account" they wouldn't have a 1/4 of the customers they do. People on CB can learn more about this and understand their credit better but there are millions of others that get taken advantage of and don't realize it. It gets people into trouble because they think since it's not reporting as a positive, it can't report as a negative when they don't pay or simply forget about the account with a balance. It's at that point people say "I never applied for credit so I don't owe it." Sure people can get in over their head with regular credit cards but having it report keeps you more mindful of it. We don't like it reporting when we screw up, but we do when it's positive. People on CB know about B* and the impact of an inquiry (or how to remove it) but it's not just about people who have found their way here, it's about everyone they take advantage of.

 

Not to pass judgement on you or anyone else, because I don't know peoples personal situations or background when it comes to credit knowledge, but just think back to the time before you joined CB and how little you knew then, versus what we know now by being here. That's 99.9% of America. When you complain about stuff like this to say the CFPB, you're also doing it for millions of other people who many not understand the situation.

 

The question I have is: "Why not report the TL?" Why does CCB report other TLs when people directly apply with the intention of obtaining credit, yet they don't report this one?

Edited April 18, 2014 by funkiehouse