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Does a fraud alert have any impact on account reviews (soft inquiries for CLIs). I only ask because i went through the Capital One EO for an increase, which is soft, and they said the would still need to verify my identity with a phone call. I'm just curious how that works with other cards that might just do behind-the-scenes account reviews.
Just wanted to bump this one up...let me know if i'm posting in the wrong place!
FCRA 605A
(h) Each initial fraud alert and active duty alert under
this section shall include information that notifies all prospective
users of a consumer report on the consumer to which the
alert relates that the consumer does not authorize the establishment
of any new credit plan or extension of credit, other than
under an open-end credit plan (as defined in section 103(i)),
in the name of the consumer, or issuance of an additional card
on an existing credit account requested by a consumer, or any
increase in credit limit on an existing credit account requested
by a consumer, except in accordance with subparagraph (B).
@EaglesFan2006 wrote:Does a fraud alert have any impact on account reviews (soft inquiries for CLIs). I only ask because i went through the Capital One EO for an increase, which is soft, and they said the would still need to verify my identity with a phone call. I'm just curious how that works with other cards that might just do behind-the-scenes account reviews.
I received 4 auto CLI from Discover the entire time I had my TU reports frozen AND had a 7-year fraud alert on it. Honestly, I think it really depends on the lender and how they handle account reviews and CLI.
Does having a Fraud Alert have any impact on the account reviews your current creditors do via a soft pull un-initiated by you, for things such as CLI? I'm asking because I recently went through the Capital One EO, which is a soft pull, and the letter said they couldn't approve becuase they were unable to satisfy the alert by reaching me...I was a little taken aback by that since it was a soft pull, but i don't know enough about the process....so now i'm thinking about other accounts. For example, I know Barclay, Target, etc have been known to give periodic CLI's without my asking...does the fraud alert hinder that??
OP, I have combined both of your threads on this topic together.
@EaglesFan2006 wrote:Does having a Fraud Alert have any impact on the account reviews your current creditors do via a soft pull un-initiated by you, for things such as CLI? I'm asking because I recently went through the Capital One EO, which is a soft pull, and the letter said they couldn't approve becuase they were unable to satisfy the alert by reaching me...I was a little taken aback by that since it was a soft pull, but i don't know enough about the process....so now i'm thinking about other accounts. For example, I know Barclay, Target, etc have been known to give periodic CLI's without my asking...does the fraud alert hinder that??
Once again, I believe it depends on the policy of every creditor you have a relationship with. Some may have a policy that will have no issues where others (Capital One EO) will have a policy that states all fraud alerts must be satisfied before they make any credit decisions. I know all my creditors soft pull me at regular intervals and Discover was the only one who gave me an auto CLI through a Freeze and Extended Fraud Alert. If you want a definitive answer, your best bet would to call every creditor you do business with and ask what their policies are since they are not uniform across the board.