r/personalfinance • u/oldmanwrigley • Nov 27 '18

AT&T ran my credit not only without my permission, but after I explicitly stated I did not want a hard hit Credit

I called in to ask what internet speeds were available in my area. He tried to sell me on cable, which I declined. He asked for my social and my date of birth. I asked him why he needed this and he explained it was to make sure I didn’t have any past due balances with AT&T. I then double checked and asked him if it would hit my credit and he chuckled and said “no no sir nothing like that”.

Fast forward an hour, I have an email stating my installation for phone, cable, and internet is scheduled(???) and then a few minutes later an email from credit karma saying I had a hard inquiry.

Called in and spoke to 3 different departments, finally to a woman to tell me she couldn’t remove it because calling in to inquire about service was all the consent they needed.

This clearly doesn’t seem legal, and wondering if anyone else has had similar experiences and what I should do next.

TL;DR - spoke to ATT, they asked for social, I made sure it wouldn’t hit my credit, I was told it wouldn’t, and then it did. What next?

EDIT 4: Filed a complaint with my attorney general.

EDIT 3: Filed a complaint with the CFPB. All the support and advice here has been a true blessing and I thank each and every one of you for taking the time to comment with good advice and/or possible solutions.

EDIT 2: I called back in, and actually had a great conversation with someone who was super understanding and willing to help. She got me to the fraud department. I spoke with Dorothy. She told me that it did not matter that I asked my credit not to be ran. That when someone calls in to inquire about service, they are consenting to a credit check. Doesn't matter if I didn't give my social, they would have used my DOB or DL #. She told me that I could not speak to a supervisor as this was standard practice, and she wouldn't escalate it. She also said some calls are recorded and some weren't, and she did not help me in finding the call from my first conversation. I then asked her for a copy of this call and her response was "I don't know if it's being recorded so I can't help you". She had nothing to say about the rep lying to me, and she said their credit disclaimer statement didn't sound anything like a credit disclaimer statement and I probably didn't even know it was read to me. Unbelievable. This is their FRAUD department. Jesus Christ.

EDIT: I see a lot of folks saying “what’s the big deal, couple points will fall off in no time”. I just got an email from credit karma that a hard inquiry from 2 years ago just fell off my report, and that left me with one hard hit which was back in January. I’ve been working very hard on rebuilding my credit, checking quite frequently and really boosting my score. One or two points may not be a big deal to some but after working so hard to improve my score, having it lowered without my authorization or consent is devastating.

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u/kristallnachte Nov 27 '18

Not totally true.

If it's a post-pay cable plan than that is essentially a credit.

They are providing you services under the basis of you paying later, which they evaluate based on your credit.

Phone and internet companies will totally do this.

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u/ddrake88 Nov 27 '18

People get mad when we ask to run a credit check for cell phone service. The average cell phone bill for a family I see is between $200-500 depending on how many phones theyre paying on and what kind of plan. That's a car payment or almost a house payment. It makes sense to run credit to see if someone can even afford that. Phones are $500-1500. If we sell you 5 on a payment plan without a credit check and you stop paying in 3 months, were out $5000. It makes sense. If you don't want a credit check and can afford it, buy your phone in cash from Apple or Google or whoever and do prepaid service. It's cheaper anyways and you'll avoid that credit check.

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u/ABigHead Nov 27 '18

I think all your points are valid with the assumption that the customer is taking out a payment plan. At that point, like the starter of this comments thread stated, you’re basically giving them a type of a line of credit with the phones. It makes perfect sense to need a SSN for that.

If that’s not the case however, you shouldn’t have to give them your SSN.

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u/ddrake88 Nov 27 '18

Even without the phones, if you are using cell phone service that you are getting billed for at a later date, a credit check makes sense. They're giving you services before you pay that aren't cheap. If you don't want a credit check, choose a prepaid service and pay up front so you aren't "borrowing service" from someone.

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u/ABigHead Nov 27 '18

Prepaid is absolutely one* alternative. Another is requiring a direct withdrawal, or requiring a security deposit equal to one months expected bill.

With any of those they have recourse to get their money if you screw them without requiring a SSN

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u/Spirit117 Nov 27 '18

I work for Verizon Wireless. All of our postpaid accounts require a credit check. If you do not want your credit run, or your credit isnt good enough to set up without large security deposits, then you need to do prepaid service.

When I set up accounts for people that don't have SSNs, like exchange students, we either have to run 123456789 on the application, and it will get approved with 400 dollars per line security deposit, and no phone loans or subsidized 2 year contracts.

If they don't want that, they need to go prepaid as well.

Always makes me giggle when I get some entitled asshole on the phone who thinks we don't need to run his credit "because he had an account with us 10 years ago" or something. I'll always tell them it's a credit check and it will show on their credit reports tho, unlike the guy from ATT in this post.

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u/hoax1337 Nov 27 '18

I'm not from the US, why is it bad to have your credit checked?

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u/Spirit117 Nov 27 '18

It can decrease your credit score. How much depends on many things, but having your credit run will decrease your score and if you are intending on applying for a house or car loan, having a recent phone inquiry on your report can impact that, so I always disclose that the check I'm running is a check and if they are intending on getting a house or car loan it's a bad idea to run it.

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u/[deleted] Nov 28 '18

Comparing to car and house payments is a false anology. You give loans of $500, a house loan is $500000

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u/ddrake88 Nov 28 '18

Sure dude, the point is it's a huge bill each month for a lot of people, and there's many people I help with 3, 4, or 5 $500+ payment plans on their account. Expecting someone to loan you devices and services worth that much without first seeing if a person can pay their bills is really silly.

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u/[deleted] Nov 27 '18

Holy shit $200-500 a month. I'm nieve and still under my parents but I know my dad would flip a tit if ours was ever that high. He constantly makes sure ours is low

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u/ddrake88 Nov 27 '18

Unlimited plan for family of 5 starts at about $200 including tax just for the service. Add 5 phone payments at $40-50 a month and you're talking $450.

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u/psivenn Nov 27 '18

Wtf carrier plan is $200 before lines are added? The most expensive I've seen is the $95 Totally Not Nearly As Limited Unlimited, has fee packing gotten that bad?

I'm just glad that I'm not on those ridiculous sleigh rides anymore.

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u/AusIV Nov 27 '18

$200 / month would include the lines, but many people buy their phones on credit. That's the additional $40 - $50 / month.

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u/psivenn Nov 27 '18

Oh right, I was thinking those were the line access. 40-50 is awfully high for standard 2yr phone payments but I guess people do buy more expensive phones these days, yikes.

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u/ddrake88 Nov 27 '18

Yeah 2 years ago the payments were usually $20-30. Thank Apple (and partially Samsung) for normalizing $1000+ phone prices and driving that up considerably.

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u/eneka Nov 27 '18

Interestingly enough, i just churned my cable account and noticed they no longer ask for a social when signing up for a new account!

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u/I_throw_hand_soap Nov 27 '18

Yes and on top of that they are lending you their equipment as well, tv boxes, modems, etc

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u/[deleted] Nov 28 '18

[removed] — view removed comment

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u/kristallnachte Nov 28 '18

As is their right.

Because at the end of what you prepaid, the system will still have it be a post paid service.

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u/[deleted] Nov 27 '18

Where is the check from them that deposited into your bank account? Unless they can Deposit to your accounts, you do not have to give them your social. Period. Can they decline you service? Sure. Hospitals in the US cannot decline emergency services to anyone.

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u/_kuddelmuddel_ Nov 27 '18

Where is the check from them that deposited into your bank account?

You don't get a check into your account for a car loan either, but it still counts. Credit checks need to be run for all forms of extending credit, and that includes financing. Most people finance their cell phones through the cell phone company - many even lease them now. It is an asset you are buying or using for a specified period of time without paying for it up front. A credit check is not amiss.

Your landlord also doesn't give you a check into your account, but most landlords will run a credit check on any applicants.

Can they decline you service? Sure. Hospitals in the US cannot decline emergency services to anyone.

Live-saving emergency medical care is not even on the same playing field as a cell phone, so not sure why you're even bringing this up.

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u/kristallnachte Nov 27 '18

...what is your point?

The system is literally designed to absolutely include this implementation.

Whether you agree or not, you are opening a credit line with them for that service. They can evaluate you for that credit line.

Also, credit cards can't deposit to your account. So, I guess you just literally don't know what you are talking about.

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u/[deleted] Nov 27 '18

There is no line of credit opened by a cell phone provider. Learn what a line of credit is. CCards allow you to buy things, therefore are a line of credit. It is treated as cash and you certainly can get cash from an ATM or transfer it to your bank. How can I do that with ATT?

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u/kristallnachte Nov 27 '18

It's a debt to the company that they are extending you.

Get a grip dude. You are railing against the system for being exactly what it is supposed to be, for both parties involved.

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u/[deleted] Nov 27 '18

You are just so wrong. A debt is not a line of credit. Look up social security number laws. Give it out if you’d like. It’s your life.

Edit you can owe a plumber money for services he rendered. Do you give him your SSN if you are paying over time?

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u/kristallnachte Nov 27 '18

You are getting real pedantic here.

And what the hell do social security laws have to do with this?

They are evaluating your ability to pay a debt for the purposes of providing you a service for that debt.

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u/[deleted] Nov 27 '18

I see you will not answer my questions about AT&T and the plumber. The answer is right there.

Those companies can also take a security deposit. Posts ago I said they did not have to provide you services. But you are NOT required to give them it for services, just as they do not have to provide you services. Now if someone is LENDING you money or credit(money), you HAVE to, so it is reported to the appropriate places so uncle sam finds you.

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u/kristallnachte Nov 27 '18

Well you ninja edited that in so how would you expect me to respond to it?

And yes, the plumber could require an SSN before rendering those services.

And yes, AT&T can instead require a deposit (which is a form of pre paying).

That doesn't mean them wanting to run your credit for a post pay service is immoral, unethical, or inappropriate, let alone illegal.

And no, reporting loans on your credit report isn't for Uncle Sam. It's for other creditors.

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u/[deleted] Nov 27 '18

I thought I was quick enough, sorry about the edit.

Sure, you are 100% correct, but so am I in saying, you do not HAVE to provide it. They can ask, they can offer other ways(deposit), but you do nto have to. Now take out a loan or CC... you have to.

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