What Is a Soft Credit Check? Published March 16, 2021 | 6 min. read
Elisa Ortiz Elisa has been with Credit.com since 2014, when she started out a. Read More
Whenever you apply for anything a loan, credit card, etc. the lender will need to look into your credit report. Called a credit check, there are two kinds of credit checks hard and soft. Each is used for different reasons and has a different impact on your credit score. Below, find out more about soft credit checks, when and how they’re used and why they’re beneficial.
What Is a Soft Credit Check?
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Welcome to Wiley’s update on recent developments and what’s next in consumer protection at the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC). In this newsletter, we analyze recent regulatory announcements, recap key enforcement actions, and preview upcoming deadlines and events. We also include links to our articles, blogs, and webinars with more analysis in these areas. We understand that keeping on top of the rapidly evolving regulatory landscape is more important than ever for businesses seeking to offer new and ground-breaking technologies.
Regulatory Announcements
The U.S. Supreme Court granted review last week in
TransUnion LLC v. Ramirez, which presents the question of whether Article III or Rule 23 of the Federal Rules of Civil Procedure permits a damages class action where most class members experienced no actual injury. This question has taken on increasing urgency over the past several years, as plaintiffs and their counsel routinely seek classwide statutory damages on claims for technical violations of statutory requirements even though most class members experienced no resulting injury.
TransUnion provides the Supreme Court with an opportunity to resolve whether a class action may be certified where plaintiff can recover massive damages on behalf of class members who have suffered no injury-in-fact within the meaning of Article III.
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A federal court in Maine recently held that the federal Fair Credit Reporting Act (“FCRA”), 15 U.S.C. § 1681,
et seq.
, preempts burdensome credit reporting restrictions imposed by the Maine Fair Credit Reporting Act. “By seeking to exclude additional types of information” from consumer credit reports, the court held that “the Maine Amendments intrude upon a subject matter that Congress has recently sought to expressly preempt from state regulation.” The case is captioned
Consumer Data Industry Association v. Frey, 2020 U.S. Dist. LEXIS 187061 (D. Me. Oct. 8, 2020).
As Troutman Pepper
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Addressing a recurring issue bedeviling the background screening industry, the U.S. Court of Appeals for the Eleventh Circuit confirmed on December 4 that it is not inaccurate for a consumer reporting agency (CRA) to report a criminal or sex-offender record without matching the record to a subject consumer, so long as the CRA notifies the user that the record needs further investigation before being attributed to an individual.
This seemingly technical ruling under the Fair Credit Reporting Act (FCRA) goes to the heart of criminal background screening by CRAs in the U.S. since criminal records in the United States, in a great majority of cases, do not contain definitive identifying information such as social security numbers or even specific dates of birth. This means that many providers of criminal background screenings provide records in response to a screening without matching to a specific individual, leaving it to th