Consumer complaint received 2025-06-21 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: FIRST MERCHANTS CORPORATION
State: OH

Complaint narrative:
Consumer Financial Protection Bureau XXXX. XXXX XXXX XXXX XXXX XXXX XXXX Subject : Complaint Regarding Deceptive Credit Inquiry and Unprofessional Conduct by First Merchants Bank To Whom It May Concern, I am writing to file a formal complaint against First Merchants Bank concerning a deceptive and unauthorized credit inquiry conducted by one of their loan officers. This experience has left me feeling misled, disrespected, and harmed financially. 

Prior to applying for a mortgage loan, I made it explicitly clear to the bank representative that I relied on two primary sources of income : XXXX XXXX XXXX XXXX XXXX XXXX XXXX Housing assistance through a XXXX  XXXX  XXXX ( XXXX ) I informed the representative that the only condition under which I would proceed with the application was if both income sources would be included and accepted during underwriting. Despite this, the agent knowingly omitted my housing voucher income and went ahead with a hard inquiry on my credit, against my clear instruction and without full disclosure or informed consent. 

When I raised concerns about this, the representative became argumentative and defensive, claiming after the fact that their institution does not accept XXXX incomedespite the fact that this had been the central topic of our initial conversation. This behavior was not only deceptive but a violation of my trust and financial privacy. 

To make matters worse, the loan XXXX then launched into an unsolicited and condescending lecture about my debt-to-income ratio, despite my strong financial standing. He claimed that my housing costs were over 80 % and referenced a 15 % mark, suggesting that I was carrying too much debteven though : I do not have any student loans, auto loans, or other consumer debt. 
I maintain an excellent credit score of XXXX. 
My credit profile is clean, with a consistent history of responsible financial behavior. 
This entire experience felt bizarre and discriminatory. If the loan XXXX truly believed there were issues with my income qualification, he should have been transparent upfrontnot run my credit first and then attempt to justify it afterward. I was also very clear from the beginning that I did not want my credit impacted unnecessarily, especially by an institution that would ultimately decline to work with me based on income type. 

I am requesting the CFPBs assistance with the following : Immediate removal of the hard credit inquiry from my credit report, as it was unauthorized and deceptively obtained. 
A formal review of XXXX XXXX XXXX  lending practices, specifically how they handle applicants with nontraditional income sources such as XXXX  or XXXX. 
Appropriate action to ensure transparent and fair treatment for all applicants, particularly those from low-income or XXXX communities who are most vulnerable to predatory or dismissive practices. 
Thank you for your attention to this matter. I am willing to provide further documentation or clarification upon request.

Company response to consumer: Closed with explanation