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  1. #1
    Join Date
    Jan 2008
    Location
    Dallas, Texas
    Posts
    7

    Default When Does Denying Credit Violate the Law

    My question involves personal finance in the State of: Texas

    I was recently denied credit for a Macys credit card. All of my credit scores are slightly over 800 and I have no debt so this really got my curiosity. I requested my credit report and there were no negative items, but the letter from Macys says there was a previously delinquent account. It turns out they have denied credit due to my ex-wife’s delinquent account which occurred in 1991 during a divorce. I have to question the validity of denying credit based on something that happened 17 years ago. Moreover, that delinquent account was subsequently discharged in bankruptcy after the divorce. Does the action taken by Macys violate any laws?

  2. #2
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,251

    Default Re: When Does Denying Credit Violate the Law?

    No, their action did not violate any laws.
    Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around.

  3. #3
    Join Date
    Jul 2008
    Posts
    853

    Default Re: When Does Denying Credit Violate the Law?

    One does have to wonder where Macy's got information about a delinquency that occurred more than 17 years ago. Unless this account was an old Macy's account, the only place they could legally get such information is from a credit reporting agency.

    Soon, you will get the denial letter (unless you already have) and this will tell you which reporting agency they got your credit report from. Pull that report. Anything negative listing older than 7 years old is not permissible. I will bet that if such a listing is there, it is from one of the companies that provides credit reports while denying that they are a credit reporting agency, and claiming that they are a "compiler of information" and not a CRA. This would be false, and illegal. In this case, the entity to be sued is the pseudo-CRA and not Macy's. (It is an FCRA violation)

  4. #4
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
    Posts
    1,404

    Default Re: When Does Denying Credit Violate the Law?

    Quote Quoting TLark
    View Post
    My question involves personal finance in the State of: Texas

    I was recently denied credit for a Macys credit card. All of my credit scores are slightly over 800 and I have no debt so this really got my curiosity. I requested my credit report and there were no negative items, but the letter from Macys says there was a previously delinquent account. It turns out they have denied credit due to my ex-wife’s delinquent account which occurred in 1991 during a divorce. I have to question the validity of denying credit based on something that happened 17 years ago. Moreover, that delinquent account was subsequently discharged in bankruptcy after the divorce. Does the action taken by Macys violate any laws?

    Some credit card companies have a policy not to issue a card to a previous card holder that has defaulted with them. They have an internal system that compares your social security number against previous accounts you may have had from them.

    They will decline you a new account no matter how high your FICO scores are.

    American Express started this practice many years ago and many have followed. If you ever default on an American Express card even if it was 40 years ago you will never be able to get another American Express card.

    With your current scores I am sure you have other cards you can use. Dont let this bother you. And Macys has the right to decline you a card just because they can if they want to. No laws where broken here.
    My posts are not intended to offend anyone. I am sorry if they have.

    When it comes to your FICO scores you are dinged if you do and dinged if you dont

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