Issue with PC Financial on credit bureau inquiries

[ohnabatko]

Hi all,

I just want to share something and ask whether someone else has experienced the same, and may be how to deal with this issue. The story started the other day, when I received by credit report on a non-related matter and I notice that there more than expected credit "hard" inquiries from PC Financial. I have a single PCF Master card with them.

I call their customer support and ask why and for what did you ask for my credit report. They told me that irrelevant whether what I request, if done over the phone, they will hit my credit report to verify your data.

I was furious, :evil: around those dates I have indeed requested a new savings account and a GIC account but there is no credit purpose and there cannot be any credit underlying reason on these matters. At least to be have been an overdraft I would have said fine.

Moreover they did not perform a soft inquiry (which is the usual case for identity validation with other of the companies I dealt with) but a full credit inquiry without a result requesting a credit. Of course when opening those accounts they asked me that they will verify the information with the credit bureau but the expectations of my agreement were always around a soft inquiry. So be aware when you order on telephone!!!

It seems that the best is to go to PC Pavillion.

Did somebody else experience the same and what is the escalation? Obviously the conversation with the CSR did not result in anything but wasting time.

[AllWheelDrift]

I believe anytime anyone is asking for consent, it's for hard inquries. The reason they do hard inquiries when opening savings accounts is to determine your hold limits, and if you opened a chequing account, overdraft limits.

[ohnabatko]

I believe anytime anyone is asking for consent, it's for hard inquries. The reason they do hard inquiries when opening savings accounts is to determine your hold limits, and if you opened a chequing account, overdraft limits.
How exactly you define a "hold limit" and the logic behind?

[AllWheelDrift]

How exactly you define a "hold limit" and the logic behind?
Well, if you deposit a cheque, they will only release up to a certan amount and "hold" the rest (preventing you from withdrawing it) until the cheque clears. The purpose is to prevent you from cashing fraudulent cheques and the ammount they "trust" you (i.e. how much the release without a "hold") depends on your credit rating. Until the cheque clears, it's really the same as having given you credit.

[ohnabatko]

Well, if you deposit a cheque, they will only release up to a certan amount and "hold" the rest (preventing you from withdrawing it) until the cheque clears. The purpose is to prevent you from cashing fraudulent cheques and the ammount they "trust" you (i.e. how much the release without a "hold") depends on your credit rating. Until the cheque clears, it's really the same as having given you credit.
AllWheelDrift, I am again saying this is not the case with me and I think you are misplacing the terms in this case. It's a savings account and a GIC. For the last one I should not point out why depositing is not possible and for the former - it is disabled for me to be done through ATM.

Even if it was enabled, again my understanding that there is no credit purpose in the hold time. The cheque clearance actually is a technical operation and may not be counted as extended credit as there is obviously no interest charged. It is rather a fraud prevention measure. Not to mention that different cheques clear differently (CA one, versus US one) so I based on that I would not call it a credit grace at all.

[volodyan]

AllWheelDrift, I am again saying this is not the case with me and I think you are misplacing the terms in this case. It's a savings account and a GIC. For the last one I should not point out why depositing is not possible and for the former - it is disabled for me to be done through ATM.

Even if it was enabled, again my understanding that there is no credit purpose in the hold time. The cheque clearance actually is a technical operation and may not be counted as extended credit as there is obviously no interest charged. It is rather a fraud prevention measure. Not to mention that different cheques clear differently (CA one, versus US one) so I based on that I would not call it a credit grace at all.

I had a similar experience. This is what I wrote to their Support:
"On November 8 I opened Interest Plus and No Fee checking account at the Pavilion at Loblaws, St. Clair West, Toronto. The lady who opened me the accounts assured me that since I do not request the credit card the credit check the bank does is a "soft inquiry". This was an important consideration for me. Today, less than 2 weeks since the opening of the accounts I wanted to open an Interest First account. The bank representative told me that the information given at the Pavilion was misleading, the inquiry they made was a "hard" inquiry, only GIC requires a soft inquiry, and to open a new saving account another hard inquiry MAY BE needed (he was not sure if the Nov 8'th check can be referenced). For this reason I did not proceed with the application. I request to remove Nov 8'th "hard inquiry" from my credit file or at the very least to reference it for the Interest First account."

Talked to the supervisor afterwards, he told he will instruct the lady who opened me an account but they cannot do anything about the hard inquiry and if I insisted on opening the Interest First without one (he told I could) they would place severe holds on all my accounts, even those already active.

[Jungle]

I was told they do it to prove your idenity. Second time I went in the pavilian, I declined to check my credit rating and they still opened an account.