Searching credit history - is permission needed?

barbiedoll79

A couple of days ago I bought a £12 bracelet from 'Very dot com' (I'm new to the forum so I'm barred from posting the actual URL) which is the new name for the Littlewoods catalogue's online store. For anyone not familiar with how catalogues like Littlewoods work, traditionally they require you to set up a credit account. It's a bit like having a store card ie. monthly installments at a ridiculously high interest rate meaning they can target vulnerable people. Because I have no desire to be credit scored or set up an account with them, I payed by credit card. However, today I received an Alert from my Equifax report saying that they had run a credit search on me. Now I have two questions:
1) Why did they credit score me if I settled the bill upfront? (I'm seriously worried they have set me up an account)
2) Don't they need my permission to credit score me?

lisyloo

1) Are you sure it was a credit search and not just an "identity check"?
I have found Equifax alerts a bit hit & miss to be honest.
If it was not a credit search but an identity check then it won't be seen by lenders.

2) Yes, they do need your permission.
Normally there is box you tick on the website to say you agree to their terms and conditions. Ther is usually a link to those terms and conditions which would be several pages long. Most people do not read all of this and just check the box.
So it's possible you agreed to it without knowing unless you read several pages of terms and conditions. Most people don't.

Extant

If you ticked this...



You agreed for them to search you. It doesn't have to be expressly worded as "we will credit score you" for them to do it.

They credit scored you because that's a condition of you opening an account with them. There doesn't appear to be a way to purchase without opening an account.

barbiedoll79

Actually you can pay without opening an account and there is a seperate set of terms and conditions. You have to go through checkout to discover this. I did with made-up details before I put my actual details in just to make sure.

property.advert

I posted here and elsewhere about the new menswear shop advertising on the TV, Jacamo. To their credit they do say on tv that you will be credit searched. but only in the writing.

I suspect that it is a ploy because of the following:

1) Credit limits are likely to be quite low relative to credit cards and thus the credit score need not be high.

2) All spending must be done with the company offering the credit. The profit from that is available to offset any defaults.

3) They are relying on people just ticking the conditions box.

I believe that it must be made perfectly clear that they want you to open a credit account and will be credit searched. I would also like you to be able to set up a function on your credit account which stopped people searching. You could then release the restriction only at the time you applied for credit.

barbiedoll79

Can I just make it clear here that I have paid the full amount by credit card - the payment has been processed according to my online credit card statement so it is settled. At no point during the ordering process did Very suggest in any way that I was opening a credit account and at no point did I apply for a credit account with them. As somebody who is quite cautious with regards financial matters, I read the terms and conditions. At no point did I consent to a credit check and at no point did Very suggest they would perform one. Plus the bracelet is now late to arrive and I have made a complaint which has yet to be answered by their 'customer service' department.

YorkshireBoy

barbiedoll79 wrote: »

...<snip>...

I note you haven't answered lisyloo's question 1) in the first reply above. Please could you do so, because if it's simply an ID check you're fretting about nothing, as no-one but yourself and Equifax can see the search.

digitalphase

Did they send you an email saying 'welcome to your new Very account' with account details about limits, APR etc in it? If not then they haven't opened an account and maybe just ID checked you.
You do not have to open a credit account with them, you just select to pay by debit/credit card at checkout rather than pay over 3 months at 0% interest.
So, if you selected to pay by the former, I don't see why there would be a credit account opened for you. Did it ask you details about your other credit accounts... It's pretty clear when you are applying for an account, and they won't just open one without asking some questions. I know as I only opened one last week!

I'm thinking it's just an ID check to confirm your identity as you paid by credit card....

barbiedoll79

This is what Equifax say:

'SHOP DIRECT FINANCE COMPANY LTD , a Mail Order company, has made an inquiry against your credit report on 14/10/2009 . If you were not aware of or did not consent to this search, contact SHOP DIRECT FINANCE COMPANY LTD or Equifax for clarification. ' - I'll contact Equifax since 'Very' have ignored my enquiry I guess.