[mikem]

Rather a printout/(or log in info) from creditchecktotal.com or similar site...I'd like to offer my clients such a service if possible and legal.

[J.Celifarco]

Rather a printout/(or log in info) from creditchecktotal.com or similar site...I'd like to offer my clients such a service if possible and legal.

Bizfi/mcc will just talk to your account rep or underwriter prior to submission.. They will not fund though without pulling to confirm that the information is correct

[CreditGuy]

BizFi operates in some magical fantasy world where FCRA doesn't exist?

[mcaguru]

Fund without checking credit?!! I believe tony AKA "truck face" and jimmy AKA "Brass head" are from the few people i know that don't pull credit when funding or even make borrower sign a contract.

[J.Celifarco]

BizFi operates in some magical fantasy world where FCRA doesn't exist?

did not say fund without checking credit. I said you can get a preapproval without a credit pull and if you have a copy of the credit report.. there is a big difference

[mcaguru]

Cresthill Capital hates making Soft Offers (we like making hard offers in 3 hours) but if you need a deal underwritten prior to checking merchants credit... would be happy to help. (not all the time my UW's hate it).

[ridextreme]

did not say fund without checking credit. I said you can get a preapproval without a credit pull and if you have a copy of the credit report.. there is a big difference

If they're really interested in getting funded, they will be eager to provide their SS#. Otherwise tell him you can "quote" him anything but the only thing that is going to matter is what he actually gets approved for. People that don't want their credit run are just wasting your time.

[J.Celifarco]

If they're really interested in getting funded, they will be eager to provide their SS#. Otherwise tell him you can "quote" him anything but the only thing that is going to matter is what he actually gets approved for. People that don't want their credit run are just wasting your time.

Agreed, more often then not deals that start out this way usually dont get done

[CreditGuy]

did not say fund without checking credit. I said you can get a preapproval without a credit pull and if you have a copy of the credit report.. there is a big difference

If a broker brings them a file with a third party report and they tell the broker they won't proceed based upon any of the data in said report, that is a credit determination and subsequently a violation of FCRA. Funding the loan or making an affirmative credit decision isn't what makes them subject to FCRA, making a credit determination based on report data does.

[MikeGreen-Quarterspot]

If they're really interested in getting funded, they will be eager to provide their SS#. Otherwise tell him you can "quote" him anything but the only thing that is going to matter is what he actually gets approved for. People that don't want their credit run are just wasting your time.

Are they not interested in providing the SS#? If they just do not want the credit pull, it is not an issue. QuarterSpot does a soft pull and does not file a UCC. Listen to the others when it comes to a merchant that doesn't want to provide the SS#. Your time is too valuable.

Thanks
Mike

Michael Green
Executive Vice President
Business Development & Sales
Direct: (917) 924-2202
partners@quarterspot.com

[NoBigDeal]

Cresthill Capital hates making Soft Offers (we like making hard offers in 3 hours) but if you need a deal underwritten prior to checking merchants credit... would be happy to help. (not all the time my UW's hate it).

This reply made me laugh so hard. Just a lot of Good Cop/Bad Cop.
you don't like to...but you'll do it...but you don't like to...BUT YOU'LL DO IT!!! (but you don't like to)

[J.Celifarco]

If a broker brings them a file with a third party report and they tell the broker they won't proceed based upon any of the data in said report, that is a credit determination and subsequently a violation of FCRA. Funding the loan or making an affirmative credit decision isn't what makes them subject to FCRA, making a credit determination based on report data does.

never knew that, learned something new

[mcaguru]

This reply made me laugh so hard. Just a lot of Good Cop/Bad Cop.
you don't like to...but you'll do it...but you don't like to...BUT YOU'LL DO IT!!! (but you don't like to)

Yes we can do it. so we give our typical 180K offer in 2-3 hours! (20Kish commission) and than at contract time we pull credit and see he has never paid a creditor and defaulted on his 2K discover credit card and deal gets killed -- its that part ... i hate the no credit pull offers!!

[NoBigDeal]

Yes we can do it. so we give our typical 180K offer in 2-3 hours! (20Kish commission) and than at contract time we pull credit and see he has never paid a creditor and defaulted on his 2K discover credit card and deal gets killed -- its that part ... i hate the no credit pull offers!!

Completely agree with you. As soon as I have an ISO tell me the merchant doesn't want their credit pulled, the first thought I have is NOT, "Oh, this is gonna be my whale of the month."
In a space where UW/funders are given such little upfront information about a business (application and 4 mo's of Processing/Bank statements) we gotta go by the little that we see (such as FICO.) Take FICO away and what do you have? Just a whole lot of sensitive info about a merchant and their business less the past and present performance on whether they've paid creditors

Again, just thought your comment was funny, not kickin you for it

[BankComplianceGuy]

If a broker brings them a file with a third party report and they tell the broker they won't proceed based upon any of the data in said report, that is a credit determination and subsequently a violation of FCRA. Funding the loan or making an affirmative credit decision isn't what makes them subject to FCRA, making a credit determination based on report data does.

There's a little more to this. There are two general types of violations for users of credit reports. The first one is doing a hard pull without the consumer's permission or a permissible purpose as defined in the rule. The other violation is failing to provide an adverse action notice when credit is denied based in whole or in part on a consumer credit report.

Permissible purpose to do a hard pull applies to consumer or business credit equally. Permission to pull a consumer report needs to be in writing. Even if its for an MCA. This part of the rule is strictly about protecting access to the consumer's report, since hard pulls affect consumer credit.

FCRA Adverse action notices only applies to consumer credit. Not needed for MCA's because you are not denying credit. For business loans, also not needed because it is a business suffering the adverse action, the consumer is a potential guarantor, and guarantors cannot suffer adverse action. Still need to deliver a Reg B adverse action to the business. One caveat, is if a consumer (sole prop/unincorporated individual) wants a business loan and gets denied. Then a consumer suffers and adverse action and if their personal credit report was used, then an FCRA adverse action notice must be given.

[CreditGuy]

There's a little more to this. There are two general types of violations for users of credit reports. The first one is doing a hard pull without the consumer's permission or a permissible purpose as defined in the rule. The other violation is failing to provide an adverse action notice when credit is denied based in whole or in part on a consumer credit report.

Permissible purpose to do a hard pull applies to consumer or business credit equally. Permission to pull a consumer report needs to be in writing. Even if its for an MCA. This part of the rule is strictly about protecting access to the consumer's report, since hard pulls affect consumer credit.

FCRA Adverse action notices only applies to consumer credit. Not needed for MCA's because you are not denying credit. For business loans, also not needed because it is a business suffering the adverse action, the consumer is a potential guarantor, and guarantors cannot suffer adverse action. Still need to deliver a Reg B adverse action to the business. One caveat, is if a consumer (sole prop/unincorporated individual) wants a business loan and gets denied. Then a consumer suffers and adverse action and if their personal credit report was used, then an FCRA adverse action notice must be given.

§*603. (f) The term “consumer reporting agency” means any person which, for
monetary fees, dues, or on a cooperative nonprofit basis, regularly engages
in whole or in part in the practice of assembling or evaluating consumer
credit information or other information on consumers for the purpose of
furnishing consumer reports to third parties, and which uses any means or
facility of interstate commerce for the purpose of preparing or furnishing
consumer reports

It is still a violation in the sense that they would be considered a consumer reporting agency under the above and we both know that there is no way they are compliant with the requirements that come with that.

[Triton]

Just go to Quarterspot.

They only do a soft pull not affecting the merchants credit.

[J.Celifarco]

If a broker brings them a file with a third party report and they tell the broker they won't proceed based upon any of the data in said report, that is a credit determination and subsequently a violation of FCRA. Funding the loan or making an affirmative credit decision isn't what makes them subject to FCRA, making a credit determination based on report data does.

How is it a violation if they are not make a credit determination but only offering a preapproval based on information received. They will then do a credit pull when the merchant agrees to the preapproved terms.

[BankComplianceGuy]

§*603. (f) The term “consumer reporting agency” means any person which, for
monetary fees, dues, or on a cooperative nonprofit basis, regularly engages
in whole or in part in the practice of assembling or evaluating consumer
credit information or other information on consumers for the purpose of
furnishing consumer reports to third parties, and which uses any means or
facility of interstate commerce for the purpose of preparing or furnishing
consumer reports

It is still a violation in the sense that they would be considered a consumer reporting agency under the above and we both know that there is no way they are compliant with the requirements that come with that.

An ISO be considered a "consumer reporting agency"? That would be a huge stretch based on the definition. In your example they bring a file with a "third party report". They didn't collect information about the consumer and prepare the report themselves. They got it from a CRA (Experian, TransUnion). They didn't get a fee for just delivering the report to underwriting. As long as they got permission to pull that consumer report, they are ok.