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Rental Car Hard Pull Inquiries

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How are Rental Car companies considered legally allowed to pull credit reports for Debit Card transactions? I have rented cars for over 15 years with debit cards and recently discovered that last year two companies show hard inquiries on my report and I had no idea.

According to the FCRA:

§ 604. Permissible purposes of consumer reports [15 U.S.C. § 1681b] (a) In general. Subject to subsection ©, any consumer reporting agency may furnish a

consumer report under the following circumstances and no other:

(1) In response to the order of a court having jurisdiction to issue such an order, or a subpoena issued in connection with proceedings before a Federal grand jury.

(2) In accordance with the written instructions of the consumer to whom it relates. (3) To a person which it has reason to believe

(A) intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer; or

(B) intends to use the information for employment purposes; or

© intends to use the information in connection with the underwriting of insurance involving the consumer; or

(D) intends to use the information in connection with a determination of the consumer's eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant's financial responsibility or status; or

(E) intends to use the information, as a potential investor or servicer, or current insurer, in connection with a valuation of, or an assessment of the credit or prepayment risks associated with, an existing credit obligation; or

(F) otherwise has a legitimate business need for the information

(i) in connection with a business transaction that is initiated by the consumer; or

(ii) to review an account to determine whether the consumer continues to meet the terms of the account.

I don't see anything that says they have a permissible reason—they are not a creditor.

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(F) otherwise has a legitimate business need for the information

(i) in connection with a business transaction that is initiated by the consumer;

There it is right there, you quoted it yourself.

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Could also be © if you opted for insurance through the car rental company.

Remember, you ARE borrowing a $15k (or more) vehical from them. They want to make sure you don't have a bad history with not bringing cars back in one piece. YOU know you're trust worthy, they do not.

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Isn't that annoying? A company seems to just randomly check your credit and when you ask about it they say, "oh we had permissible purpose for a business transaction."

If they checked Equifax you can have it removed by disputing it. At least they were willing to delete my hard inquiries when I disputed them about a year or so ago.

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I can see where it's permissible purpose.

On the other hand, there was a time period for about 2 years when I rented a car about once every 2 weeks and I never had a single hard pull and I rented from every major company and a lot of mom/pop places...

FWIW, I always use a credit card and I always have both my own insurance paperwork and the insurance from my credit card....

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