[MCNetwork]

If you read the fine print at the bottom of many applications (CAN Capital's for example), it states that by signing the application, the merchant authorizes the funder and each of its representatives, successors, assigns and designees to obtain consumer or personal, business and investigative reports, processing reports, bank statements, credit reports, etc. etc.

So from a legal standpoint, this information can be passed off to another party that meets the definition of "assign" or "designee", which can basically cover anyone. From an ethical standpoint, given the widespread cases of credit card fraud and identity theft, this practice shouldn't be permitted.