Logix Federal Credit Union Hit with Class Action Over ‘Unauthorized’ Credit Report Pulls

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Logix Federal Credit Union faces a proposed class action in which a California woman claims the financial institution has unlawfully pulled consumers’ credit reports without a permissible purpose for doing so.

According to the 11-page lawsuit, it is Logix’s practice to obtain credit reports for consumers who begin filling out a loan application through the company’s website regardless of whether they complete or submit the form.

The case, which alleges violations of the Fair Credit Reporting Act (FCRA), claims the defendant’s practice of accessing consumers’ credit reports without authorization or a valid reason for doing so has harmed proposed class members’ credit scores.

The plaintiff says she visited Logix Federal Credit Union’s website on March 13, 2020 to apply for a loan. After entering her background information, the plaintiff purposely did not complete or submit the application “because [she] wanted to wait to submit the application until she was certain that she could qualify for the loan,” the lawsuit relays.

Nevertheless, the defendant “went ahead” and pulled the plaintiff’s credit report from Equifax and Transunion despite lacking the plaintiff’s authorization to do so, the case alleges. Per the suit, the plaintiff’s credit score “dropped dramatically” as a result of Logix’s unauthorized inquiry into her credit report, and she was then found ineligible to qualify for the home loan she initially sought.

The lawsuit claims Logix violated the FCRA, which provides that a consumer’s credit report shall not be obtained “for any purpose” except the specific reasons for which a consumer report is authorized under the law.

According to the case, the plaintiff’s experience is not an “isolated instance” but reflects the experience of many others whose credit reports were pulled by Logix even though they never completed or submitted their loan application on the defendant’s website.

The plaintiff looks to represent anyone in the U.S. whose credit report was obtained by Logix after they initiated but did not complete and submit an online loan application within the past four years.

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