Removing Hard Inquiries

[Anonymous]

I have seen a lot of sample letters to send to CRAs, for example this one:

your name
your address

CRA
CRA address

date

Re: Unauthorized Credit Inquiry

To whom it may concern,

I recently received a copy of my Equifax credit report. The credit
report showed a credit inquiry by your company that I do not recall
authorizing. I understand that you shouldn't be allowed to put an
inquiry on my file unless I have authorized it. Please have this
inquiry removed from my credit file because it is making it very
difficult for me to acquire credit.

I have sent this letter certified mail because I need your prompt
response to this issue. Please be so kind as to forward me
documentation that you have had the unauthorized inquiry removed.

If you find that I am remiss, and you did have my authorization to
inquire into my credit report, then please send me proof of this.

Thanking you in advance,

Your name

These letters used to remove hard inqs seem to be meant for only unauthorized hard inqs. Now my question is could you use these letters for authorized hard inqs? For example, if you applied to a few credit cards but were declined, can you try and send these letters in to at least get those hard inq removed? Can you still just pretend it was a unauthorized hard inq and if they are lazy and don't want to provide you with evidence maybe they will let it pass and remove the hard inq? What you guys think?

Message Edited by damet on 04-02-2009 04:41 AM

[Anonymous]

Obviously there is nothing physically stopping you from doing so.

You have asked an ethics questions, not a logistical question.

[Anonymous]

I guess it is more of an ethics question. But has anyone done something like this knowing those hard inqs were legit and got it removed? That's what I'm wondering.

Message Edited by damet on 04-02-2009 04:57 AM

[MidnightVoice]

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@Anonymous wrote:

These letters used to remove hard inqs seem to be meant for only unauthorized hard inqs. Now my question is could you use these letters for authorized hard inqs? For example, if you applied to a few credit cards but were declined, can you try and send these letters in to at least get those hard inq removed? Can you still just pretend it was a unauthorized hard inq and if they are lazy and don't want to provide you with evidence maybe they will let it pass and remove the hard inq? What you guys think?

---

OK, so this is not only immoral, it is illegal, and a Federal offense!  We try to only discus legal ways of improving your credit status here 

[Anonymous]

Inquiries are the least factor for FICO.  They stop counting after 1 year and drop entirely from your CR in 2.  I wouldn't worry about them too much.  But you should probably hold off on new apps.

[Anonymous]

Midnight, I am not arguing with you in the least in this post.  I am only dissecting a topic that has often come up with that I have some perspective to comment on.

FCRA is a consumer protection law.  It is designed to protect consumers from abusive or unfair credit practices in the reporting of credit.

We must remember one thing:  NOTHING is required to be reported on a consumer credit profile.  This is why you can negotiate a PFD or that some creditors do not report at all.  CRA reporting from a creditor is not mandatory by law.

FCRA only mandates that a few things, at its core:  Only accurate information may be reported.  Derogatory information must be removed NO LATER than 7 years for some items and 10 years for others (of course certain government liens etc. can be indefinite).

The point I make is that it is not a federal offense to dispute an item, regardless of its accuracy.  FCRA says that "nobody has the right to remove" an accurate item.  The fact that you don't have a right to remove an accurate item does not mean it must be reported.  PFD and GW are obvious proof of this.  And there are no prescribed penalties for doing such.

But the real issue is not whether it is legal or illegal, but the end result.  Even if you successfully were able to remove accurate derogatory items, if you DON"T begin to employ good credit and financial habits, you will end up in a derogatory credit position again anyway.

Bad habits will continue to harm you on your CR, but also creditors who pass all costs on to the consumer base, meaning that APR's, cost of goods or credit criteria may all increase.

Don't look for shortcuts and loopholes, dig in and understand that time will be necessary.  Fiscal conservatism will be necessary.  Instant gratification - impulse - gotta have it now regardless attitudes will have to be changed.  Credit should only be granted to the credit worthy.

So, you have "no right to remove" an accurate item.  And, remember that credit is not a right, it is a priviledge that somebody is extending to their own risk.  (Yes, I know they make money and have vested interests....yada, yada....some take advantage, etc.) 

Lastly, predatory lenders thrive due to poor credit and financial decisions.  When you develop good credit habits, then predators have very little chance of preying on you.

Message Edited by txjohn on 04-02-2009 06:28 AM

[Anonymous]

Well I speak from experience here. A close friend of mine disputed a inquire from Macy's and they not only placed a fraud alert on his file but removed his Macy's acct from his file. He did have the acct placed back on his EX file but he had some explaining to do with Macy's.

[llecs]

Ditto to Carter. I've been reading in these forums for a while and disputing inquiries can often lead to a fraus alert (CRAs think you are a victim of ID theft) and also read numerous stories of the associated creditor either stop reporting or even close the account.

[Anonymous]

Damet,

            Good Will letters and Good Lie letters are two very different things . I don't think you'll find anyone on these boards advocating that you try to B.S. your way out of these hard pulls which apparently you authorized.

Remember where you are: an official Fico sponsored forum!

Besides, it might do more harm than good. They either have computer generated evidence of the authorization you gave them or a voice recording of you talking to a customer service rep--if you applied by telephone. If they catch you lying to them they may hold it against you if you try to do business with them in the future.

In my experience, I went through a hassle with Chase over a hardpull they initiated when I asked for a credit limit reduction. But I had the law on my side. They had no permissible purpose for doing a hard pull since I wasn't asking for new or additional credit.

It took about 6 months to get them to remove the hardpull after several letters, emails, and phone calls.

The sad fact is that by the time the hardpull was removed, most of the actual damage done to my FICO score had already faded....I think it cost me 5 points the first month and by the 6th month my scores were back to normal. There was no dramatic improvement when the hardpull finally dropped off--a couple points, at best.

By all means, you're free to try and gently persuade them to drop the inquiry for good will reasons. It can't hurt to ask while pleading hardship to win their sympathy.  But stop short of making false statements that could hurt your credibility with them. And definitely try to learn from this experience.

Nowadays, I ask in advance whether any action I take can result in a hardpull inquiry: From opening bank and brokerage accounts,to inquiring about preapproved credit limit increases. I don't take any chances. I always go to the customer service line and talk to a representative to find out their policies. And I never ask for credit unless I'm prepared to take the hit of a hardpull.

IMHO, good credit scores are more often the result of careful and deliberate actions taken on your part over time rather than creative b.s letters that insult your creditor's intelligence. 

Regards,

Cato

Message Edited by cato on 04-03-2009 06:37 AM

Message Edited by cato on 04-03-2009 06:40 AM

Message Edited by cato on 04-03-2009 06:47 AM

[brother7]

How does one know if a CRA has placed your account on fraud alert?