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 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

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?

Answer 1

Question: What can Comcast do to mitigate issues like this in the future?

Answer : To mitigate issues like this in the future:

• There should be feedback on regular basis from the client end so the top administration knows about the working of the organization
• The framework which are worked by representatives ought to have restricted access i.e. they should require endorsement from the seniors to run any credit report
• Observation and PC jammers can decrease its effect
• The group planning where the colleagues need to report each work done from their conclusion to their pioneers
• Check by the FCRA office on quarterly premise to make the organization mindful about the laws and legitimate security
• The organizations ought to be permit to report the complaint frame work. In this the organization needs to answer to FCRA about the complaints raised by the customers and what numbers of among those were settled. This will assist the Company with avoiding the above expressed practices.

Question: 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?

Answer : In the event that I was on Santangelo's place I would have additionally asserted as what Comcast did was infringement of enthusiasm of their customer. Additionally I would likewise recorded the grumble on different entrance like their complaint framework , to the shopper security act and on the online life pages . As this was not the primary instance of Comcast , numerous customers have endured issues of this equivalent issue. FCRA is giving the fiscal discipline for the infringement done with respect to Comcast. Henceforth ample opportunity has already past for them to imagine that there are different disciplines also like

• Raising issue on other entryway will hamper the altruism of the organization.
• The issue will be settled in less time as others approach the issue .
• In the event that the organization isn't effectively glancing in the issue than protest without wanting to be the subsequent stage .
• Infringement of express assent is allowable ground for remuneration.

Henceforth what Comcast did was not suitable and to exist in business they ought to evade such practices as there are numerous rival in a similar line of business and the move of their customers would not be adequate by them. Therefore to construct the trust and dependability and to keep up the altruism is must in nowadays for Comcast corporation.

PLEASE GIVE POSITIVE FEEDBACK AND UP RATE MY ANSWER, THANK YOU.