cancel
Showing results for 
Search instead for 
Did you mean: 

Hard Inquiry from a debt collector... why?

tag
Anonymous
Not applicable

Hard Inquiry from a debt collector... why?

MyFico just showed a new hard inquirie in my alerts and it's from a collections agency, why are they allowed to do this and why would they even do this... is this disputable, what do you think they're trying to do here, it says "installment loan inquiry" lol, hope they don't take out a loan in my name for me to pay back...

inquire.png

Message 1 of 9
8 REPLIES 8
Anonymous
Not applicable

Re: Hard Inquiry from a debt collector... why?

I found some information on it, but not 100% sure why... if it's just to get my address or what, do they want to see that I'm perfectly paying a bunch of new accounts so they can feel even more upset that I'm not paying them? I wish I could wave a magic wand and they'd just go away and forget I exist.

Message 2 of 9
Anonymous
Not applicable

Re: Hard Inquiry from a debt collector... why?

Checking your address and checking on your assets. Also hoping to get your attention.

Message 3 of 9
Anonymous
Not applicable

Re: Hard Inquiry from a debt collector... why?


@Anonymous wrote:

I found some information on it, but not 100% sure why... if it's just to get my address or what, do they want to see that I'm perfectly paying a bunch of new accounts so they can feel even more upset that I'm not paying them? I wish I could wave a magic wand and they'd just go away and forget I exist.


As an owner of one or more of your debt, they have permissible purpose to pull your credit. They can do soft or hard pulls at their discretion. This is not disputable.

Message 4 of 9
Anonymous
Not applicable

Re: Hard Inquiry from a debt collector... why?


@Anonymous wrote:

@Anonymous wrote:

I found some information on it, but not 100% sure why... if it's just to get my address or what, do they want to see that I'm perfectly paying a bunch of new accounts so they can feel even more upset that I'm not paying them? I wish I could wave a magic wand and they'd just go away and forget I exist.


As an owner of one or more of your debt, they have permissible purpose to pull your credit. They can do soft or hard pulls at their discretion. This is not disputable.


Yeah, I sadly found that out a little while ago... hopefully they don't do it over and over again just to be vindictive.

I'm not sure what kind of assets they could be trying to identify though, like seeing if I have a car loan or something?
They sure as hell better not try and take my new camera, I'll get physical lol... it's supposed to be a tool to make money eventually, money that could enter their pockets if I ever get back on my feet more properly.

I'll have no issue with settling for a way lower amount in the future but right now I need to worry about my current obligations, finding a place to live for my family and get the IRS and other scarier people taken care of first, I'd gladly pay this thing off with a lump sum settlement if I had the money to use toward that and not more important things though, hopefully one of these days.

Message 5 of 9
Anonymous
Not applicable

Re: Hard Inquiry from a debt collector... why?

They can NOT see what purchases you make on a credit card.

Message 6 of 9
CH-7-Mission-Accomplished
Valued Contributor

Re: Hard Inquiry from a debt collector... why?

Freeze your reports!  They can't do HPs with frozen reports.

Message 7 of 9
Anonymous
Not applicable

Re: Hard Inquiry from a debt collector... why?


@Anonymous wrote:

@Anonymous wrote:

@Anonymous wrote:

I found some information on it, but not 100% sure why... if it's just to get my address or what, do they want to see that I'm perfectly paying a bunch of new accounts so they can feel even more upset that I'm not paying them? I wish I could wave a magic wand and they'd just go away and forget I exist.


As an owner of one or more of your debt, they have permissible purpose to pull your credit. They can do soft or hard pulls at their discretion. This is not disputable.


Yeah, I sadly found that out a little while ago... hopefully they don't do it over and over again just to be vindictive.

I'm not sure what kind of assets they could be trying to identify though, like seeing if I have a car loan or something?
They sure as hell better not try and take my new camera, I'll get physical lol... it's supposed to be a tool to make money eventually, money that could enter their pockets if I ever get back on my feet more properly.

I'll have no issue with settling for a way lower amount in the future but right now I need to worry about my current obligations, finding a place to live for my family and get the IRS and other scarier people taken care of first, I'd gladly pay this thing off with a lump sum settlement if I had the money to use toward that and not more important things though, hopefully one of these days.


There have been reported instances of collectors doing that - commonly referred to as "poisoning" your reports. Though not specifically prohibited by FCRA, I would certainly consider it an illegal tactic and would I drag a collector into court over it.

Message 8 of 9
RobertEG
Legendary Contributor

Re: Hard Inquiry from a debt collector... why?

Debt collectors have their own permissible purpose under FCRA 604 to obtain a consumer's credit report under the "collection on a debt of the consumer" purpose.

It applies if the debt collector has currently collection authority, and is separate from the "internal review of an account of the consumer" provision.

 

Reasons why a debt collector would review your credit report include the desire to see if you currently have the ability to pay.

They will make decisions as to which debts to pursue active collection based on a determination of liklihood and ability to pay.

 

If your credit report shows that you have recently paid other delinquent debts, or that you have new credit or have active revolving credit that you are using and have the assets to pay, they can be indications that you have assets.

I would be particularly concerned with a debt collector reviewing your credit report if you are near expiration of your state statute of limitations.

They may be doing a review to make a decision as to initiation of civil action seeking a judgment or garnishement.

Message 9 of 9
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.