Unauthorized Hard Inquriy from FHA

[flapjack]

Hi all,

I use a CMS and I got an alert on a new hard inquiry (11/19) on my TU report from the FHA which I did not authorize. My home loan originated 5/10 by another lender was sold to them back in July and Well Fargo now services it but why an inquiry so late, why hard, and how do I contest it ? I've called the FHA and they say they cant help me and when I call TU, they say they have no procedure to dispute inquiries.

This is important because I intend to refinance my house early next year. I am in the process of remodeling it and will be refinancing it within the next couple of months. Along those lines, I do have a couple of lines of credit that are maxed out since I am funding the remodel myself but if they wanted to do an account review, shouldn't the inquiry be soft ?

Thanks,

Flapjack.

(btw: posting another  mostly unrelated question over in the credit card forum as well)

[09Lexie]

Is the hp actually dated Nov 19? There have been quite a few posts recently of ck ESP posting inq's from months ago.

[RobertEG]

Two separate issues.... whether the inquiry was permissible, and then its coding.

FCRA 604 itemizes types of inquiries that do not require specific consumer authoriztion.  Authorization is based soely on whether they had a permissble purpose.

Parites have two stated permissible purposes for purchase of debt.  They have a permissible purpose prior to purchase to evaluate whther they wish to make the purchase, and once they secure the debt, they have permissible purpose to reviw the account.

It appears they had permissible purpose.

Coding of the inquiry is another matter.  The FCRA does not specifically regulate the coding of inquiries other than the so-called promotional inquiries, which are specfically barred from showing in credit reports availablle to others, and thus must be :"soft."

Permissible purposes such as relate to your inquiry have specific adminnstrative coding provisions by the CRAs whch, if properly coded, will be excluded from credit reports available to others.

It appears that you have legitimate basis for requesting the coding be soft, but not for contensting the inquiry itself.

I would contact the inquiree, and request they report recoding.