Forum Thread

Unauthorized Line of Credit

xskizzx 137 19 May 20, 2016 at 09:27 AM in Finance (4)
Deal
Score
0
1,696 Views

Thread Details

Hello fellow slickdealers,

I was hoping to get your advice and thoughts on a situation I encountered and my possible courses of action.

Went to an engagement ring store to purchase a ring. I had pretty much all the money to pay for it upfront, but wanted to utilize no interest financing. During the process the rep ran my credit, which was expected and stated that I was approved for $5500 no interest financing.

This is where things get slightly more complicated. She's offers me to open up an additional line of credit to pay for the remaining balance, but I assure her that I can just pay whatever the difference is. I stress that I didn't want to open up anything other than the highest card I was approved for and pay the difference. She stated that I was approved for the $5500 and could pay the difference.

So after the process I realized that two credit cards have been opened for no interest financing. One for $4000 and another for $1500. To say the least this p*ssed me of pretty heavily. I double checked with my friend who was shopping with me and he too interpreted that I had 1 card with no interest financing.

So my question is "What are my courses of action to correct this?"

If I keep the account, they essentially bamboozled me and now I'm forced to use this line of credit that I didn't want. I can pay it off and close it, but I don't know how that will impact my credit.

I'm pretty sour about how it was misrepresented and don't want to do business with them out of principle and can return everything and close the account. Now I'd have to deal with this lasting inquiry/inquiries, having to go and find another ring somewhere else and delay my proposal plans, etc.

I know I play a small part of not asking enough questions, but I took a recommendation from a friend, to which I must state that the service was great in getting the ring. The main issue I have is the misrepresentation of the credit accounts.

Maybe I'm making a big deal about nothing.

TLDR; Bought a engagement ring, rep opened a line of credit that I didn't authorize, not sure what to do to fix

6 Comments

1

Sign up for a Slickdeals account to remove this ad.

#2
Quote from xskizzx View Post :
I'm pretty sour about how it was misrepresented and don't want to do business with them out of principle and can return everything and close the account. Now I'd have to deal with this lasting inquiry/inquiries, having to go and find another ring somewhere else and delay my proposal plans, etc.
Come on, don't even think about delaying your proposal because you want to make a point to the store. I get that it wasn't what you wanted, but look at the bigger picture here. You've got the ring you want and the partner you want -- get that taken care and then go complain to the manager if you want.

It'd be one thing if they double-charged you, or someone else was using your line of credit, but if this is just about protecting your credit score then come on, man, just let it go Smilie

A single $5500 credit card vs a $4000 and a $1500 isn't *that* big of a deal anyway.
Reply Helpful Comment? 0 0
#3
I agree its not a huge deal to your credit and I would probably pay it off and just let it go. More for the emotional satisfaction of being done with the company then any practical reason. Don't delay getting engaged, this will seem like an incredibly minor issue when you look back on your life in a few years.

You could try calling management, especially if its a chain company and they might be able to do something for you but i could see them offering a future discount which I would not find very appealing, Or leave a negative review and move on with your life.

Next time you make a big purchase and have the cash get a card like the Chase Sapphire and put the purchase on that and get yourself some cash back or travel rewards. Dont mess around with free financing from a retail store. Hardly seems worth the effort.
Reply Helpful Comment? 0 0
Joined Jul 2005
killroy was here
9,108 Posts
1,224 Reputation
#4
talk to the store manager and file a complaint with the state. if you didn't authorize it have them fix it. the inquires don't hurt your rating much and the lines of credit don't hurt as long as they are paid off. but I'd have the store fix it on principle and file a complaint.
Reply Helpful Comment? 0 0
so i spent time making a signature. only to realize that you couldn't put an image in the signature. please enjoy the link to my signature, assuming it works.

http://imgur.com/FtBghZ2
#5
It's honestly not a very big deal. However, all credit applications must have approval from you and it should have a signature. Did you sign anything? My guess is that if you signed something, you probably didn't read it all.

You could get it corrected if you didn't sign for it but what are you really complaining about here? That is lost upon me as your goals are still in tact?

You clearly picked out the ring you wanted and you had the credit offered with interest..... Don't go through life complaining about things that don't matter. Buck up, propose to your girl, and be optimistic...

Good luck!
Reply Helpful Comment? 0 0
Joined Jun 2005
Let Sleeping Dogs Lie
5,845 Posts
2,388 Reputation
Pro
#6
I am confused the number was 5500.00 in your message, it seems like 4K was some kind of limit so they did 2 accounts to make 5500.00 your message is a bit confusing look at the bold parts:

During the process the rep ran my credit, which was expected and stated that I was approved for $5500 no interest financing.

This is where things get slightly more complicated. She's offers me to open up an additional line of credit to pay for the remaining balance, (what balance cost of ring please?) but I assure her that I can just pay whatever the difference is. I stress that I didn't want to open up anything other than the highest card I was approved for and pay the difference. She stated that I was approved for the $5500 and could pay the difference.

So after the process I realized that two credit cards have been opened for no interest financing. One for $4000 and another for $1500. To say the least this p*ssed me of pretty heavily. I double checked with my friend who was shopping with me and he too interpreted that I had 1 card with no interest financing.
Reply Helpful Comment? 0 0
Joined Dec 2003
CDI gave me free netflix!
9,232 Posts
3,313 Reputation
Pro
#7
Odds are that either:
1) You didn't read the fine print.
2) The clerk didn't know what they were doing.
3) Some combination of the two.

The entire situation seems very unusual. Most, if not all, store cards utilize a single underlying bank for financing. It's not like car shopping or a mortgage broker where they might try numerous sources to get you (or them) the best deal. And it makes no sense to have gotten two new lines of credit from the same bank -- they would have just given you one card with the limit you would be approved for. I guess there is a chance they do use multiple banks and maybe you got approved for both at the same time, but if so, you should certainly have seen this during the purchase process.

The hard pull is minimal in terms of your credit score and will dissipate quickly. The biggest hit you will see is:
1) Maxed out utilization on two revolving accounts -- which could be magnified based on your overall credit situation.
2) A double hit on your average age of accounts (AAoA). Again, the impact will depend on your personal situation, but it could lower your AAoA by years, and this takes longer to come back from.

If you already made the purchase and charged both credit lines, you're pretty much SOL. Any claim to unauthorized is now exponentially harder to make, not to mention having a balance to pay. However, if you have not yet used the $1500 line, then you can probably get it nixed. At a minimum, you should be able to get it closed and voided and not appear on your CR as an account, fixing the AAoA concern. If they ran two pulls (which I don't think you stated), then you could waste a lot of time trying to explain to people that you want it removed, or file a claim with the CRAs. It will probably take a bit of time, but they could also probably be removed.

In either case, while I can understand the frustration, this is far from the end of the world.
Reply Helpful Comment? 0 0
Page 1 of 1
1
Join the Conversation
Add a Comment
 
Copyright 1999 - 2016. Slickdeals, LLC. All Rights Reserved. Copyright / Infringement Policy  •  Privacy Policy  •  Terms of Service  •  Acceptable Use Policy (Rules)  •  Interest-Based Ads
Link Copied to Clipboard