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My employer just circulated a memo of a new debt reducation program approved by the board of directors. The BOD established a fund that loans employees an interest free loan of up to $1000
On the application it says the employee authorizes the company to verify the info on the form (where you provide info about the credit account) "as it relates to my credit history"
My question is, isn't this illegal to obtain consumer credit information on an employee without retaining a Consumer Reporting Company and following all the state/Federal rules and guidelines about obtaining credit information? it also says the board can reject an application for any or no reason at all
And of course how the company can deduct the outstanding amount from the employees final payroll check or get a collection agency after an employee who separates from the company etc
Although I doubt i would ever get involved with anything like this, i wonder, is this a scam here? The director of finance is a real ****bag and i picture him getting an atty and suing the pants off someone for more $$ than they actually owe
Im not sure why your complaining about an interest free loan, and the fact that they are going to verify information. If you don't like it don't apply.
They are trying to help their employees stay or get out of credit trouble, and they are protecting themselves from being taken by the employee that might try to scam the company by getting an interest free loan they don't need.
Of course since your credit is perfect and your debt is non-existent you are free not to participate, or hell you could even quit in protest.
My employer just circulated a memo of a new debt reducation program approved by the board of directors. The BOD established a fund that loans employees an interest free loan of up to $1000
On the application it says the employee authorizes the company to verify the info on the form (where you provide info about the credit account) "as it relates to my credit history"
My question is, isn't this illegal to obtain consumer credit information on an employee without retaining a Consumer Reporting Company and following all the state/Federal rules and guidelines about obtaining credit information? it also says the board can reject an application for any or no reason at all
And of course how the company can deduct the outstanding amount from the employees final payroll check or get a collection agency after an employee who separates from the company etc
Although I doubt i would ever get involved with anything like this, i wonder, is this a scam here? The director of finance is a real ****bag and i picture him getting an atty and suing the pants off someone for more $$ than they actually owe
Any ideas?
No, I think it's totally legal for them to get your info with your permission. A signature is a pretty powerful thing.
And the thing about rejecting the loan for any reason at all...wouldn't you want to reserve the right to lend your money to whoever you want? Maybe they have a limited supply and only want to lend to the most worthy applicants.
that the employee applicant has given their written permission; however, does nt the language have to mention what reporting company is providing that info from the credit bureaus and the applicant has the right to review the info in their report if an adverse decsion is made?
No, I think it's totally legal for them to get your info with your permission. A signature is a pretty powerful thing.
And the thing about rejecting the loan for any reason at all...wouldn't you want to reserve the right to lend your money to whoever you want? Maybe they have a limited supply and only want to lend to the most worthy applicants.
That is why all my credit information is blocked. Walk into a car dealer, tell a salesman your name, walk around the lot, then drive straight home, log on and check your credit report. Your credit has been checked by the dealership probably by the time you were looking at the sticker on the second vehicle.
that the employee applicant has given their written permission; however, does nt the language have to mention what reporting company is providing that info from the credit bureaus and the applicant has the right to review the info in their report if an adverse decsion is made?
how do they access the credit bureaus?
I have no idea if it's illegal to not disclose the credit bureau that's providing the info. I think generally, they probably will provide you with that info. I don't think anybody has anything to lose by not doing so. And yes, last time I heard, they do have to provide you with a copy of the credit report they reviewed--if you're rejected.
Different companies access credit bureaus differently. The bank I used to work for had a direct link to a company (not a credit bureau like Transunion or Equifax, but an intermediary between credit bureaus and banks. They consolidated the info that they got from different credit bureaus and from government agencies). We clicked on a button and our computer would tell us if the customer was approved or not, based on a lot of different criteria.
That is why all my credit information is blocked. Walk into a car dealer, tell a salesman your name, walk around the lot, then drive straight home, log on and check your credit report. Your credit has been checked by the dealership probably by the time you were looking at the sticker on the second vehicle.
No joke...car dealerships are really bad when it comes to this. They'll try to ask you sneaky questions or trick you into giving them your ID so they can run your credit. Don't fall for it.
I know not all car salesmen are evil, but I have a serious trust issue with them. And my trust issue has really escalated since I had a class with guy who was a car salesman. He would brag about how he could take a customer who was looking for a sensible car and smooth talk them into buying a stupidly expensive SUV or sportscar. It really annoyed me.
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I understand
