Consumer complaint received 2020-03-17
Product: Credit reporting, credit repair services, or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Report provided to employer without your written authorization
Company: CITIBANK, N.A. (CA)

On XX/XX/2020, I requested a credit limit increase on my Costco Citi card. I requested a limit equal to that which I have on my American Express card, about double the current limit on my Costco Citi card. I have had the Citi card for several years and have a 100 % on-time, in-full payment history. 

On Citi 's website, it states : " Once you submit your request, well need to obtain a credit bureau report. '' At no point, either in full-size or small print, does it provide that this inquiry will be a hard pull. I have recently requested my credit limits raised on other cards -- no company ever performed a hard pull. I consented to a soft pull of my credit report. I did not and would not have consented to a hard pull just to raise my credit limit. 

XXXX  's blog does a good job of laying out the commonly understood differences between hard pulls and soft pulls : " A hard credit inquiry occurs when a potential lender examines your credit report and uses that information to decide whether to extend an offer for credit. For instance, if you apply for a home mortgage or a car loan, your lender will make a hard inquiry of your credit to help determine if you qualify for the loan. A soft credit inquiry, on the other hand, is a more routine check that can be done without your permission. A common example of a soft inquiry is when a lender youre currently doing business with checks your credit to make sure youre still creditworthy. You can also trigger a soft inquiry yourself if you check your own credit. '' ( https : //XXXX ) Citi is a bank with which I have a current business relationship. I was not applying for a new loan or mortgage with Citi, merely seeking to increase the credit on a preexisting credit card. When I accepted that Citi would look into my credit when considering an increase, it was based on the reasonable and commonplace understanding that a soft pull would be performed because of the context of the existing relationship. Citi has the lower barrier to avoid this kind of miscommunication, as Citi could easily modify the language on its website to specify the type of credit inquiry ( a hard pull, rather than a soft ) and could provide fine print regarding the ramifications of a hard pull to advise consumers. I have reviewed other complaints in the CFPB system and see that I am not the first Citi customer to have been surprised by a hard pull. 

As a result of Citi 's unauthorized hard pull, my credit has now dropped from " excellent '' to " good. '' This has occurred as we are trying to raise our credit to buy a home -- the only reason I was looking for a credit increase was to shrink my utilization ratio. I attempted to resolve the issue with Citi 's customer support, but unfortunately, the representatives were patronizing and not helpful. I am a reasonably informed consumer, with the additional benefit of having worked in contract law and with the Fair Credit Reporting Act. The language as it stands on Citi 's website is not sufficient for consumers to provide informed consent for a hard credit pull.