Question
Case Facts: Keith Santangelo contacted Comcast Corporation through its online customer service chat function and requested Internet service for his new apartment. During the chat
Case Facts: Keith Santangelo contacted Comcast Corporation through its online customer service "chat" function and requested Internet service for his new apartment. During the chat session, a Comcast representative asked Santangelo for permission to run a credit inquiry. Santangelo asked if any option was available to avoid the credit inquiry. The Comcast representative told him that the company would forgo the inquiry if he paid a $50 deposit. The option to pay a $50 deposit in order to avoid the credit inquiry was an explicit part of Comcast's official Risk Management Policy. The policy also required a $50 deposit from any prospective customer who agreed to a credit inquiry but whose credit score proved to be unsatisfactory.
Santangelo opted to pay the $50 deposit in lieu of a credit inquiry. Nevertheless, Comcast, without Santangelo permission, pulled his credit report. This unauthorized credit inquiry lowered Santangelo's credit score. Santangelo filed a complaint alleging that Comcast's actions violated the Fair Credit Reporting Act (FCRA) as well as Illinois state law. Comcast filed a motion to dismiss, arguing that Santangelo had not stated a claim under the FCRA.
Issue:Can a company violate the FCRA by running a credit check on a customer who has paid a deposit in lieu of a credit inquiry?
Decision: Yes. The federal district court for the Northern District of Illinois held that Santangelo's complaint sufficiently alleged facts showing that Comcast had obtained his credit report without a permissible purpose in violation of the FCRA. Therefore, the court denied Comcast's motion to dismiss.
Questions to answer:
- Do you agree or disagree with the decision that was made by the courts? Why or why not?
- What ethical implications did Comcast cross when they ran the credit check without permission?
- What can Comcast do to mitigate issues like this in the future?
- How would you react if your credit report was run without your permission lowering your score? Would you file a claim? Why or why not?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started