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Frequent Contributor
Slab
Posts: 283
Registered: ‎12-16-2011
0

12 year old bad debt, new hard inquiry

My EQ is clear of all old bad debts but a CA has hard pulled my EQ because of and old debt that has been off of my EQ for over 5years and is at least 12 years old. I disputed the inquiry with the CFPB and the CAs response was "

Dynamic Recovery Solutions said:
Explanation of closure
Any inquiry by Dynamic Recovery Solutions, LLC on the consumer's credit report is accomplished in accordance with
the permissible purposes provided in the Federal Credit Reporting Act. 15 U.S.C. Section 1681b(3)(A)." 

 

Looking into the FCRA I found the following:

Sec. 1681c. Reporting of obsolete information prohibited

(a) Except as authorized under subsection (b), no consumer reporting agency may make any consumer report
containing any of the following items of information:
(1) cases under title 11 of the United States Code or under the Bankruptcy Act that, from the date of entry of the
order for relief or the date of adjudication, as the case may be, antedate the report by more than 10 years.
(2) Suits and judgments which, from date of entry, antedate the report by more than seven years or until the
governing statute of limitations has expired, whichever is the longer period.

(3) Paid tax liens which, from date of payment, antedate the report by more than seven years.

(4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven
years.

 

My question is: When the CA made the hard pull which is noted on my credit report. wouldn't the inquiry then become a report and in violation (4) above?

 

Thank you

Equifax FICO 781, Transunion FICO 821, Experian FICO 807,

810 goal on all three by 3-1-2015
Mega Contributor
RobertEG
Posts: 18,131
Registered: ‎03-19-2007
0

Re: 12 year old bad debt, new hard inquiry

You pulled up the incorrect section of the statute.  What you quoted is codified in the FCRA at section 605(a).

What was cited in their response was 15 USC 1681(b)(3(A), which is codified under the FCRA as section 604(a)(3)(A).

 

FCRA 604(d)(3)(A) is the standard permissible purpose relied on by debt collections, as it permits the CRA to furnish a copy of a credit report to a person for the purpose "collection of an account of the consumer."  So they had permissible purpose.

 

Normally, any inquiry other than one that is based on making a consumer an unsolicited, firm offer for credit or insurance can be included in credit reports issued to others (i.e., coded and shown as a so-called "hard pull").

 

However, you could make a case that, since any reporting of their collection itself is now be excluded from your credit report, any showing in your credit report of an inquiry by a debt collector tells others that your debt is under collection by that debt collector, and is thus in violation of the credit report exclusion bar.

 

Thus, a dispute, not of their legitimate pull, but of the CRA showing that pull in credit reports they are providing to others.

It's tantamount to still reporting a collection......

 

 

 

 

Frequent Contributor
Slab
Posts: 283
Registered: ‎12-16-2011
0

Re: 12 year old bad debt, new hard inquiry

Thanks a lot for the reply RobertEG. You have given my the information to dispute with the CRA. I have no problems with hard inquiries but this one blind sided me,

Equifax FICO 781, Transunion FICO 821, Experian FICO 807,

810 goal on all three by 3-1-2015

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