Class Action Claims ISPC Made Unauthorized Credit Inquiries

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An Alabama consumer claims finance company ISPC illegally conducted hard inquiries into her credit background without permission.

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The 14-page proposed class action lawsuit accuses ISPC of violating the Fair Credit Report Act (FCRA), a federal law that prohibits companies from using or obtaining a consumer report without the individual’s permission and without a “legitimate business need” for the information.

The case alleges that in February 2023, the plaintiff received a prerecorded phone call from Smart Alarm System, during which she was asked about her home ownership and current alarm system. The woman was then transferred to a manager, who told her that she qualified for an alert system but needed to verify some information, the complaint says. Per the filing, the plaintiff provided her full name, address, phone number and email but refused to proceed when the manager began to request payment options for a new security system.

According to the suit, the plaintiff was alerted by her credit monitoring service the following day that a new account had been opened in her name. The woman says she discovered that the account had been opened by ISPC and was associated with Core Home Security, a company that offers and installs home security systems.

Upon further investigation, the plaintiff found that ISPC, formerly known as the Independent Savings Plan Co., had performed a hard inquiry on her credit reports from Experian, TransUnion and Equifax, all without her authorization, the case contends.

“Because Plaintiff had refused to purchase Defendants’ services, Defendant had no legitimate business need for the information,” the filing says, claiming that ISPC’s actions were “knowing and intentional” violations of the FCRA.

The lawsuit looks to represent anyone in the United States whose consumer credit report was obtained by ISPC for an inquiry without their permission within the past two years.

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