Consumer complaint received 2025-02-13 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Credit inquiries on your report that you don't recognize
Company: DISCOVER BANK
State: AL

Complaint narrative:
While paying my Discover credit card bill, online, a solicitation for Discover home equity loans appeared. I clicked the link and read about the loan product, but did not submit an application. The following day, a credit monitoring co. notified me there had been a new inquiry on my credit file. I wondered why they pulled a credit report without a loan application. Then, another notice that an inquiry was made. I pulled it up and verified, in fact, the inquiry was made by Discover Bank, XXXX XXXX XXXX XXXX, XXXX, IL XXXX on XX/XX/XXXX. I called both phone numbers provided to inquire how/why this happened. ( XXXX ) XXXX and ( XXXX ) XXXX. They bounced me from credit card customer service to banking customer service, then to XXXX when they couldn't give me answers. I thought that was odd because when I called the number provided, it begins by asking if you're calling about an inquiry on your report. So, they obviously know what they're doing. Yet, they told me they didn't even know what department generated the inquiry, then connected me with XXXX. XXXX said they should not have connected me with them, since it clearly states the inquiry was initiated by Discover Bank, therefore would need to be handled by them. He reconnected me with someone at Discover Bank on XX/XX/XXXX who verified there had been no loan opened in my name and he verified the loan application was incomplete and not submitted. It sounded like he'd been trained to state there was no problem, there, since a loan was not opened in my name and a loan app was not active. I asked him to reiterate that he was able to see that the loan app was never submitted. He did verify that and stated the loan app was classified as incomplete. I asked him, how then was an inquiry made if the loan app was not submitted? He said I would have to authorize an inquiry for them to legally do that. I stated that nowhere in my visibility was that ever stated. He said it would have to be stated somewhere on the page for that to happen, therefore I must have agreed to it. I assured him I would never have agreed to that before first knowing I planned to submit an application. He said it had to have been stated somewhere. I asked him to notate that if it was stated, it had to be somewhere outside of the customer 's visibility, and therefore either accidentally or intentionally misleading, because very few people would ever agree to an inquiry, with no plan to submit the application. He said 'because the inquiries are done at the front end of the process '. I asked, 'so the inquiry is generated prior to the customer even filling out the application? '. He said 'yes, because we don't want to go any further with customers who aren't credit-worthy '. I said, 'yes, but that means you pull a credit report before the customer even makes the decision to submit a loan application, right? ' He says 'well you had to have agreed to it and anyway it doesn't matter because no loan was opened in your name and no loan app is still pending. ' I said, 'well I'd hope there was no loan app pending, since you already verified I didn't submit an app. ' He kept harping on fact there was no problem to worry about because there was no loan opened. He said that when someone leaves an online app incomplete, 'the system automatically declines the loan and closes the app. ' I asked him.. 'so, it's classified as a loan that was declined? ' He says 'yes, the app is declined and closed. ' I ask... 'all that despite the loan app was never submitted because the customer never even made the decision to apply? ' He keeps repeating, 'yes, but there is no worry because there is no loan in your name. ' I expressed comfort in that but also asked him to notate my frustration over an inquiry that is now on my credit report, negatively affecting my credit score, for no telling how many years, before it falls off, and I never agreed to it, not knowingly anyway. I asked him to report the problem. He stated there was no problem. I told him, it is actually a problem for me, as my credit score went down and the reason stated is 'number of inquiries, high '. I also asked him to notate that if their system actually did state that an inquiry was being agreed to, it was still misleading, even unethical, in my opinion, because it was not prominently displayed or communicated in a way that customers are aware. I reminded him that basically no one would agree to a credit inquiry who did not plan to submit a loan app, and that even if they think they're having people authorize that, it is not being communicated properly. He said he would notate it, and he was mostly professional, but also did not seem to care or show any concern or understanding of the larger problem, at hand. I have no faith they will correct this, as it has the appearance of being intentionally misleading. And, I'm certain others ' credit scores are also being negatively affected, since it is not being made clear that they'll be pulling a credit report. Also, this policy of pulling a credit report at the beginning of the process, before customer has time to decide if they'll be submitting an app, at all, makes no sense. He admitted this was being done to protect them, the lender, from wasting time on customers who aren't credit worthy, but what about the customer 's time being wasted? And, what about the fact that the customer hadn't even gotten far along enough in the process to decide if they'd submit a loan app? And, most importantly, what about the fact they are bound to gain authorization before legally obtaining a credit report, and that is not being done in such a way the customer is actually aware of it? Then, even more important than that, it negatively affects said person 's credit report for years. No one would knowingly agree to that. And, that's what makes me believe they're defrauding people intentionally. Or, at least, misleading them, for their own personal gain. The representative was XXXX. The call was initiated at XXXX XX/XX/XXXX and lasted a total of XXXX XXXX without resolution. No offer was made to retract the inquiry. No effort was made, whatsoever, to rectify the situation. Not even an apology for the effect it's having on my credit score. He just professionally, but somewhat smugly, stated that at least no loan was opened in my name, therefore nothing more would be done. He did state he would voice my concerns, but there was a borderline chuckle in his voice. No empathy or understanding was expressed, at all. This is wrong and I hope you'll look into it, for the sake of other 'consumers. ' Thank you.

Company response to consumer: Closed with explanation