Capital One Auto Finance Accused of Making Unauthorized Credit Inquiry

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A proposed class action has been filed against Capital One Auto Finance, Inc. alleging the defendant violated the Fair Credit Reporting Act (FCRA) by performing an unauthorized credit inquiry regarding a California consumer. The plaintiff claims she obtained financing from the defendant in August 2013 for the purchase of a new car but had filed for bankruptcy by June 2017. The plaintiff’s debt to Capital One was allegedly discharged in October 2017, meaning, according to the suit, that she was no longer liable for it “and the account was closed.”

Despite the debt’s discharge, the complaint continues, the defendant obtained the plaintiff’s credit report a few weeks later by submitting an “account review” to a credit bureau. The case argues that the inquiry had no permissible purpose, as “there was no account to review,” making the defendant’s request unlawful under the FCRA.