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Valued Member
Saffyreblue
Posts: 49
Registered: ‎02-01-2008
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Re: HARD INQUIRY FROM A COLLECTION AGENCY

Check out this thread in the Rebuilding Credit forum....new FCRA rules..... they more clearly define Permissible purpose... http://ficoforums.myfico.com/fico/board/message?board.id=rebuildingcredit&thread.id=14588
Senior Contributor
Wonderin
Posts: 3,494
Registered: ‎05-25-2008

Re: HARD INQUIRY FROM A COLLECTION AGENCY

Oh, I admit that it's all very fudgy and vague ... but it IS a precedent and if it can be used to keep a CA from hard pulling every other month in an attempt to simply blackmail the debtor into paying the durn debt, I think it's a great "tool" to use.

I realize that we, as debtors, are responsible for the debts we incur, but at some point, the efforts to collect (like harassing phone calls, baseless threats, etc) become an egregious form of blackmail, pure and simple.

I would respectfully suggest that sabotaging CRs (in the form of negative tradelines) and potential to file suit are enough "punishment" and enough in the way of legal remedy (meaning legally allowed) ... continual "blackmail" and damage to one's CRs above and beyond the original negative TL is another thing entirely.

Personally, I think it being vague is a boon to us all ... if WE can't agree on it, the courts and pundits can't agree on it, I think the average CA will be leery of poking the decision with a pointy stick. Like I said, I think it's a great tool!

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

Senior Contributor
Wonderin
Posts: 3,494
Registered: ‎05-25-2008
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Re: HARD INQUIRY FROM A COLLECTION AGENCY



Saffyreblue wrote:
Check out this thread in the Rebuilding Credit forum....new FCRA rules..... they more clearly define Permissible purpose... http://ficoforums.myfico.com/fico/board/message?board.id=rebuildingcredit&thread.id=14588




Not really ... reference:

§ 604.(3)(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

(§ 604.(3)(F) otherwise has a legitimate business need for the information

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

or


I think both make it extremely vague. But even IF its vague, it can still be argued that they do NOT have PP.

We CAN argue that simply owing a debt to a CA does not constitute PP ... just as they can argue that it DOES.

We CAN argue that a NONcredit transaction is not considered a "transaction" initiated by the consumer, and they can argue it DOES. :smileysad:

Side note: Have I gone flippy or did I REALLY read somewhere in the new FCRA that a CA for a medical debt does not have PP? Can't remember what section I was reading ... :/

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

Senior Contributor
UpUpUp
Posts: 3,017
Registered: ‎06-03-2008
0

Re: HARD INQUIRY FROM A COLLECTION AGENCY



Wonderin wrote:


Side note: Have I gone flippy or did I REALLY read somewhere in the new FCRA that a CA for a medical debt does not have PP? Can't remember what section I was reading ... :/

If you didn't go flippy, could you please refer me to that section if you find it again? :smileywink:
Frequent Contributor
Cleanmachine
Posts: 399
Registered: ‎04-30-2008
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Re: HARD INQUIRY FROM A COLLECTION AGENCY

nathan

To answer your original question, can a Collection Agency pull your credit report and have the credit bureau place a hard inquiry on your report.

This is a little difficult to express any opinion based on the information that you provided.

Did you have a contract with a financial institution to obtain money or services that you failed for whatever reason to make full restitution??

If so, than the Collection Agency is not in violation of the FCRA, which was underscored by Robert EG.

As for the opinion of the Ninth Circuit Court on Pintos v Pacific, which was remanded back to the District Court for further review of its decision based on the Brief’s that were submitted at trial. This, in no way makes for precedent as to whom my pull ones credit report based on this opinion alone. One would need to read thoroughly the Brief’s that were submitted in the original District Court Case and the Brief’s that were submitted to the Circuit Court. In addition, what, if anything, happen with this case that was remanded back to the District Court.

It’s a little premature to believe Pintos v Pacific has set a legal precedent and it’s highly unlikely that any Court would grant “legal standing” to a Plaintiff seeking relief from a Collection Agency or the Credit Bureau based on the Circuit Court Opinion alone.

Frequent Contributor
nathan
Posts: 411
Registered: ‎04-18-2007
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Re: HARD INQUIRY FROM A COLLECTION AGENCY

Cleanmachine, to answer your question, i have never had any dealings with this ca ever. I think they may just be spying on my report to see if they can dig out any junk debt. I have never gotten a call or receive any collection notice. I am hoping for them to send me one, because that is when i will spill my venom on them.mad smiley
Frequent Contributor
Cleanmachine
Posts: 399
Registered: ‎04-30-2008
0

Re: HARD INQUIRY FROM A COLLECTION AGENCY

nathan

Collection Agencies only come in to your financial life when you default on a previous financial agreement or contract, ie: credit card, mortgage, or car loan.

So the question still remains, did you default on any financial obligation??

I understand by your post that you do not want to speak with anyone with the collection agency. It would seem to me that would be the first step to take to find out more information as to why the inquiry was placed on your credit report. You have the legal right to request “Validation” of the debt.

There are many reason one should request validation. The most important “is the debt legally yours”, there may be many names the same as yours in your State and the debt may belong to someone else. Other issues would be: Is the debt within the statue of limitations of your resident State?? Are you a victim of Identity theft???

One thing you should understand when speaking with the collection agency, never provide your DOB, SSN or other financial information. They are very good in provoking someone to provide additional information. All they need is your request for validation and provide them with your name and current address. “THAT’S ALL” I would also request that they cease calling you and you will only respond to this matter in writing.

At the very least, you will have a paper trail should the need for further action be required.

 

Senior Contributor
UpUpUp
Posts: 3,017
Registered: ‎06-03-2008

Re: HARD INQUIRY FROM A COLLECTION AGENCY



Cleanmachine wrote:

nathan

Collection Agencies only come in to your financial life when you default on a previous financial agreement or contract, ie: credit card, mortgage, or car loan.




That was a pretty matter of fact statement that is not always true. I have had a few occasions where the CA was looking for someone else and had my information by mistake. I also had a 2 year old collection on my reports from Asset Acceptance that when I called about it and told them I had no idea what it was for, they told me that they actually saw in their records that the account had been originally closed out as "close with no collection efforts" and they didn't know why I was in their system. They quickly deleted the item from my reports.
 
So, it's really not true that they only come into your life when you default on a financial obligation, sometimes it can be a mistake.
Moderator Emeritus
cheddar
Posts: 6,794
Registered: ‎09-29-2007
0

Re: HARD INQUIRY FROM A COLLECTION AGENCY

[ Edited ]
This statement:

Cleanmachine wrote:

Collection Agencies only come in to your financial life when you default on a previous financial agreement or contract, ie: credit card, mortgage, or car loan.



...is not consistent with this one:


Cleanmachine wrote:

The most important “is the debt legally yours”, there may be many names the same as yours in your State and the debt may belong to someone else. 



 

Edited because on re-reading, I was a bit terse.

Please do not assume that the only reason someone has to deal with a collection agency is because they have defaulted on a financial agreement.  I know from your own words quoted above that you know this isn't true.

Even the collection agency involved in the Pintos case discussed earlier in this thread had nothing to do with a "previous financial agreement."



Message Edited by cheddar on 07-09-2008 06:53 PM
----------------------------
App free since 7/11/08.
TU 744 / EX 710 / EQ 694 (Starting to slip. :smileysurprised: )
Frequent Contributor
Cleanmachine
Posts: 399
Registered: ‎04-30-2008
0

Re: HARD INQUIRY FROM A COLLECTION AGENCY

UpUpUp

I stand by my statement with the exception of taking out the word “YOU’ and inserting the word “ANYONE”. Please read the entire post.

 

cheddar

Not exactly know what you mean when you state “Edited because of re-reading, I was a bit terse”. Do you know how to break down the word “ASSUME”. Am I to assume that anyone that replies to a Post must be careful not to cause any adverse feelings to a moderator?

I personally did not appreciate the remark and find it to be totally unprofessional, especially since it appears you are a moderator.

I will no longer post opinions on this site.

 

PS You are taking the Opinion of the Pintos Case way out of context.


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