Blessing you with a Hard Credit check

We've got another one for you folks! Lularoe doesn't seem to know what happens when their "independent consultants" complete the merchant application for their new fancy point of sales system and the plastic card that consultants now get paid on.

A few months ago Lularoe announced they were encouraging consultants to switch to their new POS, Bless as it would charge your customers the correct tax vs Audrey that was charging the consultants tax. Now consultants are being forced to make the switch. Many consultants have been hesitant to complete the application to make the switch and for good reason. Without any real explanation Lularoe told consultants that their credit would be checked with a soft inquiry, so it's a lovely surprise when consultants are seeing a hard inquiry on their credit reports and many are seeing a great effect to this.



Over the last few days I've watch consultants express their distress of the hard inquiry hitting their credit, some have even shared their credit scores dropping as much as 30-70 points. I was one of the lucky ones who only saw a 4 point drop, but when building your credit back up that is a devastating feeling watching your hard work be affected in a negative way. What worries me is the fact that Lularoe doesn't even know the terms to this merchant application that consultants are being forced to submit.
Lularoe claims this application is for their consultants to be "Independent Merchants" to take credit cards, with this consultants are still paying a processing fee, a fee to spend their money with the card all payments are made to from Lularoe & a hard inquiry on their credits. With the old system consultants were able to take credit cards without a credit check & a slightly larger processing fee (literally a few pennies) & no fees for bank transfers. 
With this new system Lularoe consultants are more independent in the sense they are now responsible for any charge backs and fees, while still being told they must follow Lularoe's P&P.

Know before you sign, better yet Lularoe, know what you are making your consultants agree to so they know the risk they are truly taking with their credit. 

Alyssa Waters

3 comments:

Anonymous said...

This is crap. We applied for a home loan a month after doing this, and it was nowhere on my credit report. The fear mongering around this system needs to stop. You're all being ridiculous.

Alyssa Waters said...

Things like inquiries can take some time before appearing on your credit report. Just because it hasn't happened to you yet does not mean it has not happened to myself and all the active consultants now seeing the affect. The email shown above is proof that it is a hard inquiry.

Good luck with your Lularoe adventure!

Anonymous said...

Then you should consider yourself lucky as it has appeared on so many if ours.