I realize now that disputing fraudulent inquiries isn't the correct procedure, and that I should do the identity theft process, but I have to vent.
I had a hard inquiry pop up on my EQ report last week from "Bmag Luxury 2 LLC." Absolutely no clue what company that is, and since I haven't applied for credit in quite a while, I figured it was fraudulent and decided to dispute. I opened up the online dispute process and one of the available dispute reasons was something about fraudulent inquiry. Given this was a fraudulent inquiry, I selected that and fired off the dispute.
Got the results back today and EQ replied with the boilerplate that inquiries are factual recordings of access and that they wouldn't remove, and that I should contact the creditor.
Why even offer inquiry disputes, then, let alone offer the ability to dispute an inquiry as fraudulent, when all they do is say it's a factual record of report access? That seems totally bass ackwards to me to have a dispute option for something they won't do...
FCRA 611(a) expressly permits a consumer to dispute any item of information of record in their credit file, so a CRA will not state that a consumer cannot dispute.
However, once a CRA fills a request for a consumer credit report, the toothpaste is out of the proverbial tube, and cannot be undone.
They thereafter have a vested legal interest in not admitting any wrongdoing in sending your credit report to another.
They are requried under the FCRA to have received a statement of permissible purpose from the inquiree, and from that point on they will consider the fact of their filling the inquiry to be of no fault on their part.
Your concern is well-placed, as automatic verification makes a joke of any dispute, but they are likely concerned about broadly denying any right to dispute, as that would be contrary to section 611(a). It's a CYA thing......