New Jersey Mitsubishi Dealer Obtained Credit Reports Without ‘Permissible Purpose,’ Class Action Claims

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A Philadelphia resident alleges in a proposed class action that Cherry Hill Mitsubishi, Inc. procured hers and other consumers’ credit reports with neither a permissible purpose nor consent to do so.

According to the seven-page lawsuit, the Marlton, New Jersey auto dealer “consciously engaged in this conduct as a matter of practice” to secretly obtain consumers’ credit reports without their knowledge, causing harm to their scores and invading their privacy.

The plaintiff contacted Cherry Hill Mitsubishi in late May 2020 to inquire about buying a new car, the case begins. Upon initial contact, the plaintiff expressed to the defendant’s representative that she did not want her credit report accessed or her credit score affected, the lawsuit says. 

The suit alleges that while Cherry Hill Mitsubishi, as a matter of practice, tells consumers their credit reports will not be accessed, and their credit score will not otherwise be affected, this representation is false given the company performs what’s known as a “soft inquiry,” which can cause an individual’s credit score to drop. 

As the case tells it, the plaintiff was “shocked to learn” that the defendant had initiated in June an inquiry into her Trans Union credit report without her knowledge or consent, which harmed her credit score. 

“CHM falsely certified that it was inquiring into Plaintiff’s credit report for an extension of credit when no such permissible purpose existed, and Plaintiff had not otherwise consented to the review of her credit report,” the case claims. “CHM as such had no lawful purpose for accessing Plaintiff’s consumer report.” 

Cherry Hill Mitsubishi “routinely and systematically” obtains consumers’ credit reports with no permissible purpose or written consent, the plaintiff says. 

Alleged in the lawsuit are violations of the federal Fair Credit Reporting Act (FCRA). 

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