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Moderator Emerita
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Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: Household Bank Hard Pull


chriscowboy wrote:
Well I understand your trying to help, but, based on the logic that "Creditors understand the damage that can be done by making hard inquries," then Household should have no problem owning up any type of error they may have made.

I would keep pursuing this one. Just keep moving on up the chain of command.

You might try posting on Planet Feedback as well.

I've read the argument that lenders have the right to pull hards on existing customers at any time, but I don't buy it. If I'm not requesting new credit, or additional credit (this is why Chase pulls hards for customer-requested CLI's), then there's nothing happening that constitutes me requesting credit that I don't already have.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
New Contributor
chriscowboy
Posts: 62
Registered: ‎08-06-2009

Re: Household Bank Hard Pull

haulingthescoreup,

When I called Household, the CR I spoke to wasn't receptive to my concern about this. He asked if I would fax or mail a copy of my credit report to them so they could 'verify' this was in fact a Hard Pull inquiry. I immediately refused. I'm not not faxing or mailing copies of my credit reports to ANYONE at ANYTIME for obvious security and fraud precautions and to even ask me to do this is quite simply, scary.

 

I then became very annoyed, seeing where our conversation was going, and requested to speak to a supervisor. This is when I spoke to 'Sherry.' (in my original post) She claims she will send me a copy of the CC agreement which she says has the information about customers giving permission to do random hard pulls...as well as softs. She also claims she is going to pursue this further and try to find out more details to the reasoning behind the 'security risk' that led to this hard pull decision on their behalf. 

 

 

At this point I'm not sure how to 'make my way up the ladder.'  I have been googling and reading up on this on MYFICO forums for nearly 4 hours and it is eating away at me. Basically I think you are correct. A CC company needs 'permissable purpose' to do a pull at all, and even then, it leads to a soft.(AMEX monthly account reviews, etc.)

Crawl-Garden-Walk-Garden-Fly-Garden
Valued Contributor
tray
Posts: 1,350
Registered: ‎01-29-2008

Re: Household Bank Hard Pull

Hi, Sorry to hear about your demise but all I can say HSBC totally sucks and you are not the only one out there to have problems with this bank as I continue to have problems with this bank and my account is closed,  if you have not had this card long and this bank does not want to fix your situation if I was you I would just get rid of the card and be done with them as you will never know when the next HARD pull will be done the road.

Starting Score: EQ 546 TU 566
Current Score: EQ 693TU 08 729 EX 08 738Need to Garden/New Accounts
Goal Score: 800
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: Household Bank Hard Pull


chriscowboy wrote:

haulingthescoreup,

When I called Household, the CR I spoke to wasn't receptive to my concern about this. He asked if I would fax or mail a copy of my credit report to them so they could 'verify' this was in fact a Hard Pull inquiry. I immediately refused. I'm not not faxing or mailing copies of my credit reports to ANYONE at ANYTIME for obvious security and fraud precautions and to even ask me to do this is quite simply, scary.

 

I then became very annoyed, seeing where our conversation was going, and requested to speak to a supervisor. This is when I spoke to 'Sherry.' (in my original post) She claims she will send me a copy of the CC agreement which she says has the information about customers giving permission to do random hard pulls...as well as softs. She also claims she is going to pursue this further and try to find out more details to the reasoning behind the 'security risk' that led to this hard pull decision on their behalf. 

 

 

At this point I'm not sure how to 'make my way up the ladder.'  I have been googling and reading up on this on MYFICO forums for nearly 4 hours and it is eating away at me. Basically I think you are correct. A CC company needs 'permissable purpose' to do a pull at all, and even then, it leads to a soft.(AMEX monthly account reviews, etc.)


HSBC had PP to make the INQ and make a hard INQ. It is just not a usual and customary practice to make hard INQ's when you are not seeking new/additional credit. Any issuer who is telling you it is is FOS. I would persue this up the chain of command at HSBC. In the meantime do not dispute the INQ with the CRB. You cannot dispute INQ's and it will not work! You could always file a BBB complaint and a complaint with the Office of the Comptroller of the Currency:

 

     http://www.helpwithmybank.gov/

 

Banks don't like that at all!

New Contributor
chriscowboy
Posts: 62
Registered: ‎08-06-2009

Re: Household Bank Hard Pull

[ Edited ]

creditwherecreditisdue wrote:

chriscowboy wrote:

haulingthescoreup,

When I called Household, the CR I spoke to wasn't receptive to my concern about this. He asked if I would fax or mail a copy of my credit report to them so they could 'verify' this was in fact a Hard Pull inquiry. I immediately refused. I'm not not faxing or mailing copies of my credit reports to ANYONE at ANYTIME for obvious security and fraud precautions and to even ask me to do this is quite simply, scary.

 

I then became very annoyed, seeing where our conversation was going, and requested to speak to a supervisor. This is when I spoke to 'Sherry.' (in my original post) She claims she will send me a copy of the CC agreement which she says has the information about customers giving permission to do random hard pulls...as well as softs. She also claims she is going to pursue this further and try to find out more details to the reasoning behind the 'security risk' that led to this hard pull decision on their behalf. 

 

 

At this point I'm not sure how to 'make my way up the ladder.'  I have been googling and reading up on this on MYFICO forums for nearly 4 hours and it is eating away at me. Basically I think you are correct. A CC company needs 'permissable purpose' to do a pull at all, and even then, it leads to a soft.(AMEX monthly account reviews, etc.)


HSBC had PP to make the INQ and make a hard INQ. It is just not a usual and customary practice to make hard INQ's when you are not seeking new/additional credit. Any issuer who is telling you it is is FOS. I would persue this up the chain of command at HSBC. In the meantime do not dispute the INQ with the CRB. You cannot dispute INQ's and it will not work! You could always file a BBB complaint and a complaint with the Office of the Comptroller of the Currency:

 

     http://www.helpwithmybank.gov/

 

Banks don't like that at all!


How so?


Message Edited by chriscowboy on 11-15-2009 05:01 PM
Message Edited by chriscowboy on 11-15-2009 05:01 PM
Crawl-Garden-Walk-Garden-Fly-Garden
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: Household Bank Hard Pull

How not?

 

You forget that under the FCRA there is no distinction between a soft INQ and a hard INQ. If an institution is permitted to perform an INQ it could be either hard or soft. You have an account, so INQ is permitted. From the FCRA:

 

§ 604. Permissible purposes of consumer reports [15 U.S.C. § 1681b]

(a) In general. Subject to subsection (c), any consumer reporting agency may furnish a

consumer report under the following circumstances and no other:

(1) In response to the order of a court having jurisdiction to issue such an order, or a

subpoena issued in connection with proceedings before a Federal grand jury.

(2) In accordance with the written instructions of the consumer to whom it relates.

(3) To a person which it has reason to believe

(A) intends to use the information in connection with a credit transaction

involving the consumer on whom the information is to be furnished and

involving the extension of credit to, or review or collection of an account

of, the consumer; or

(B) intends to use the information for employment purposes; or

(C) intends to use the information in connection with the underwriting of

insurance involving the consumer; or

(D) intends to use the information in connection with a determination of the

consumer's eligibility for a license or other benefit granted by a

governmental instrumentality required by law to consider an applicant's

financial responsibility or status; or

July 30, 2004 13

(E) intends to use the information, as a potential investor or servicer, or

current insurer, in connection with a valuation of, or an assessment of the

credit or prepayment risks associated with, an existing credit obligation; or

(F) otherwise has a legitimate business need for the information

(i) in connection with a business transaction that is initiated by the

consumer; or

(ii) to review an account to determine whether the consumer continues to

meet the terms of the account.

(4) In response to a request by the head of a State or local child support enforcement

agency (or a State or local government official authorized by the head of such an

agency), if the person making the request certifies to the consumer reporting

agency that

(A) the consumer report is needed for the purpose of establishing an

individual’s capacity to make child support payments or determining the

appropriate level of such payments;

(B) the paternity of the consumer for the child to which the obligation relates

has been established or acknowledged by the consumer in accordance with

State laws under which the obligation arises (if required by those laws);

(C) the person has provided at least 10 days’ prior notice to the consumer

whose report is requested, by certified or registered mail to the last known

address of the consumer, that the report will be requested; and

(D) the consumer report will be kept confidential, will be used solely for a

purpose described in subparagraph (A), and will not be used in connection

with any other civil, administrative, or criminal proceeding, or for any

other purpose.

(5) To an agency administering a State plan under Section 454 of the Social Security

Act (42 U.S.C. § 654) for use to set an initial or modified child support award.

 I didn't say it was right - just that it is legal, which it is.

Member
tripat
Posts: 9
Registered: ‎11-16-2009

Re: Household Bank Hard Pull

They did this to me too on my RewardZone MC, TWICE. The first was Oct 9th and the last one was Nov 11th. I called and immediately asked for a supervisor who put me on hold to come back and tell me they did it because of "suspicious activity." I asked what suspicious activity they were referring to since this card has a $0 balance, has never ever been late, been sock drawered for the last few months, and I have not requested anything from them, not a CLI nor any new accounts. She could/would not elaborate but felt it necessary to remind me it was their "right' to do so to which I promptly replied that it was my "right" to close that account and never do business with HSBC again. She indicated she would forward on a request to the proper department to see if they would remove the inquiry but I pretty much guarantee they won't remove it.

 

The supervisor seemed surprised I was upset by the inquiry so I reminded her that while yes it was indeed their right, they KNOW pulling hard credit reports hurts credit scores and that considering they can get ALL the info they need from doing a soft instead of a hard, then WHY DO THE HARD? None of my other card issuers do this and the fact that HSBC does just seems spiteful to say the least.

 

I think that I will close this card anyway because I don't want these popping up from "suspicious activity" every 30 days. If I close it I shut down their permissable purpose. This rinky dink stuck-at-a-low-limit crap card won't be missed.

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: Household Bank Hard Pull

Welcome to the forums!

 

Of course they can always recode an INQ if they can figure out how to do it...

New Contributor
chriscowboy
Posts: 62
Registered: ‎08-06-2009

Re: Household Bank Hard Pull

I just got off the phone with an individual named 'Robert' from the HSBC Credit Review Dept. in Oregon. He told me that HSBC does account reviews periodically and that hard pulls are typically the way they do them.

 

The next hard pull that is made on my CR from them at any time will result in my immediate cancellation of the card. I told him to put that in big red letters on my account info. I am beginning to wonder that, that may be what they want me to do anyway. I mean, I am a new customer, and for whatever reason, since I don't have a history with them, they don't play by the normal rules. Clearly no other CCC makes this the normal process for account reviews.

 

The whole FCRA thing is open for interpretation. It doesnt say either way what is allowed or disallowed for hard/soft pulls. All it says is account reviews are allowed, and obviously an inquiry of some type would then follow. Clearly, if every bank in the USA made it a pratice to do random hard pulls for account reviews or any other thing that made them curious, this countries' CC customers would have a a absolute fit.

 

I don't want to be a bank basher, but HSBC card holders beware: Random Hard Pulls on your credit reports are apparently in your future for their account review process.That info. came directly from the HSBC credit reporting dept.that I spoke to.

 

I DID file a complaint with the CCAN/ Dept. of the Treasury.

Crawl-Garden-Walk-Garden-Fly-Garden
Moderator Emerita
Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: Household Bank Hard Pull

fwiw, I've never had a hard pull on my HSBC Best Buy store card, other than when I accidentally applied. The first time I see one, that card will go in the shredder.

This is an abusive practice, IMO. They know perfectly well the impact of hard inqs, and they're choosing to make them. :smileymad:
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007

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