LoveMyUGGS

Company Credit Cards - Is this legal?

Recommended Posts

I wasn't sure which forum this should be in so if it needs to be moved, please do so.

My company is getting corporate credit cards for employees. Where I've worked before, credit cards were issued in the employee's name with the company being the guarantor. This time however, the employer ran our credit without our approval or knowledge. Is that even legal? A few of us pulled our credit reports and it's on there as hard pulls. For people with sterling credit, great! For others, me included, not so much! Nothing was mentioned, nobody was asked, NOTHING. Even if it's legal, I find it embarassing at the least.

Share this post


Link to post
Share on other sites

Do you know how to freeze your credit reports? Freeze them, and no one can do this to you in the future.

Are you certain you didn't sign anything at the time you were hired, giving permission to pull your credit? Their defense would be that your permission extended to the corporate credit card application.

Even if you didn't, do you want to risk your job for the chance to collect $1,000 in court? Probably not worth it.

Share this post


Link to post
Share on other sites

There could be another reason this was done in this manner, one which will be to your benefit if your company pays their bills on time. The reason that they checked your credit could be to add you onto the card as a joint card member with you company.

In that case, each and every charge along with each and every payment made on that card will show up on both the company credit report and your credit report. This is one of the ways those that are trying to build or rebuild their credit use to increase their credit scores.

For instance, a while back I had my mother add me to her Visa credit card account which had a $20,000 limit. She used it every month by charging several thousand dollars and paid it off every month when she got the bill. Adding that account to my credit report gave me an additional $15,000 - $20,000 per month in additional available credit.

Share this post


Link to post
Share on other sites

with the company Federal ID number, it cannot be reported on your credit report.

Did you give your SS# to do this? Did the comapny use your SS# without your permission to get the card?

(Easy way to find out, call credit card and ask if they have your SS# on file for that account)

If the company used your SS# without your permission to do this...you can sue!

Share this post


Link to post
Share on other sites

This may fall under one of the permissible purposes (e.g., employment, credit, insurance) of the FCRA. If you are concerned about it, contact an FCRA lawyer for a consult.

Is this appearing under the inquiries part of your credit report or is it appearing under your credit history. That may make a difference.

Share this post


Link to post
Share on other sites

As a general rule over the last 15 years or so, employment applications have required you to grant the company permission to pull your credit report.

Furthermore, the CC issued may have the company's name on it, but its really in your name and under your SS#. The company may handle the payments for "authorized" charges, but its really your card. They set it up that way because too many employees were using "company" cards for personal expenses.

Share this post


Link to post
Share on other sites

Yes, they can do it. It is now pretty standard for all employers to have some type of hey we are allowed to pull your credit report at any time clauses.

Share this post


Link to post
Share on other sites
Guest
This topic is now closed to further replies.