Bank doing hard pulls

[Anonymous]

My brother's girlfriend told me her bank does a hard pull on her Equifax if she is overdrawn on her checking account. Is this permissible?

She doesn't have a cc tied to this account, and there isn't any sort of overdraft protection plan either. They either pay her transactions and impose fees, or just impose the fees without paying.

Allowed or not? She wants to buy a car and is worried about all these inqs showing up, like she's been applying randomly for loans and getting denied.

[Anonymous]

tell her to go to the bank manager and complain politley ( and evntually loudly if necessary ) about it. bring a copy of the report to show it's not a "soft account review inquiry".

[Chopbrocoli]

I'm not sure about hard pulls, but I'm pretty positive that the bank agent was referring to  soft pulls. Hard pulls are only used when consumers are seeking new credit or in rare instances, credit limit increases. But if they were doing hard pulls just for that, I think that is quite ridiculous. But when she signed the contract, she probably signed away to a clause stating stating "you authorize us to view financial history from credit reporting agencies if..." etc etc. If not, then its uncalled for a hard pull.

[MidnightVoice]

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@Anonymous wrote:

My brother's girlfriend told me her bank does a hard pull on her Equifax if she is overdrawn on her checking account. Is this permissible?

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Making a guess, I would say it is permissible as an overdraft is a credit transaction

[Anonymous]

ahahahahaah!!!

NO! a hard pull is completely impermissible in this case - there is no new credit\insurence request transaction initiated by the consumer - I don't know how or why would an overdraft qualify to be one.

I believe that the bank already does soft pulls every month or every other month - they have all the information then and there already - nothing missing - the only reason for a hard pull is to flag TO OTHERS one's search for NEW credit or insurance.

Just complain to the bank manager and make sure he\she understands you are serious about getting this violation corerected. For them is very simple to recode to soft (which they are entitled to).

[Junejer]

I would say that it's quite excessive to pull one's credit every time there is an OD. Again, they probably had her sign away on it in teeny-tiny bank print, but that certainly doesn't make it ethical.

I agree with demed--make some noise, if necessary. At the very least, I would ask for an ODP line WITHOUT a new INQ.

[MidnightVoice]

I agree it is excessive and immoral, but writing a check for more money than one has in one's account could be construed as a request for new credit 

[Anonymous]

How so? please enlighten me?

[Anonymous]

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@Junejer wrote:
I would say that it's quite excessive to pull one's credit every time there is an OD. Again, they probably had her sign away on it in teeny-tiny bank print, but that certainly doesn't make it ethical.

I agree with demed--make some noise, if necessary. At the very least, I would ask for an ODP line WITHOUT a new INQ.

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She certainly signed, she signed for them to do Soft pulls, account review inquiries on a regular basis - these inquiries provide exactly the same information of the hard inquiries.

Pulling inquiries visible to others is regulated - there is no justification - it is not immoral, it is illegal.

[MidnightVoice]

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@Anonymous wrote:

How so? please enlighten me?

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This person is asking the bank to loan them money.  Is that not "an application for new credit"?