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Credit Reports no longer safe, Consumer hungry companies on the prowl
Most of you would have seen the commercial from Capital One asking "What's in your wallet?", but the fact is they already know.
This credit card company has gained notoriety for its practice of checking credit reports of consumers. Its aim is to find new borrowers whom it can bombard with offers of its credit services or to beguile existing customers away from their present lender with offers of better terms.
People have consistently reported that they found repeated "inquiries" from Capital One on their credit reports. Yet surprisingly none of them had ever done any business with the company or owned one of its credit cards.
One such irate consumer is Allan of Birmingham, Alabama. He has already reported Capital One's actions to ConsumerAffairs.Com. He says that in spite of not having any loan or credit card transactions with the bank, it still made inquiries on his credit without asking him and has been doing this every month occasionally twice a month for a whole year.
This info is given to Capital One and other lenders by the three major credit bureaus namely Experian, Equifax, and Trans Union.
What happens is that the personal data and financial history of the consumers is collected by these bureaus and sold to other lenders. These lenders will in turn judge this data on consumers in the "prescreening" process
If the lender feels that the consumer is a likely candidate then they will bombard him with tons of glossy mail which offer new credit rewards and other bonuses
Credit card companies are having a tough time getting new customers as consumer debt in America is spiraling out of control. Many consumers simply prefer to cut up their credit cards. This is the reason for the fierce competition between credit card companies and the schemes to woo debtors from one lender to another
This is why credit reports are bombarded by Capital One and similar companies in an attempt to find "easy" consumers who are ready to sink further into debt.
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