Question about freezing CRA

[Anonymous]

I have never found an FTC Advisory stating that once past the SOL and CRTP a CA has no permissible purpose to pull your credit report.

What I have had are conversations with FTC staff who have come to the conclusion that legislative intent shows CAs should not have PP to pull after the CRTP and SOL have expired.  I have gone after the Biggest Fish in the Bowl and obtained a first-round TKO on just that issue.  

YMMV 

[bichonmom]

So, I guess that means there's not a lot we can do to stop them, huh? Unless/until the FTC has a rule in place that forces the CRAs to do something different, they'll keep allowing CAs to do hard inquiries.

On my EX rept., it even shows after the name of the company that it's a collection agency, and it's a hard pull, which is obviously intentional on the CA's part. And they are NOT on my CR. I was hoping freezing my EX would help stop them from doing it again, but it sounds like it won't.

[Anonymous]

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@bichonmom wrote:

So, I guess that means there's not a lot we can do to stop them, huh? Unless/until the FTC has a rule in place that forces the CRAs to do something different, they'll keep allowing CAs to do hard inquiries.

On my EX rept., it even shows after the name of the company that it's a collection agency, and it's a hard pull, which is obviously intentional on the CA's part. And they are NOT on my CR. I was hoping freezing my EX would help stop them from doing it again, but it sounds like it won't.

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I agree that the FTC / Congress should do something.  CAs can get the exact same data they seek via a soft pull.  IMO they do a hard pull as a form of extortion. 

[bichonmom]

ITA!

[guiness56]

If I can find it I will post it.  I also saw a case law for the same thing.  The judge ruled that after SOL and CRTP had passed, they could not pull your CR.  If I remember correctly, it was the 9th Circuit.

[bichonmom]

Would love to have that info if you can find it. Thank you!

[Shellemilyrose]

I didn't have the huge issue of hard credit pulls on my credit report by CAs.  Here is why I froze my EX report:

1.  I was apalled at EX's policy of hiding our FICO scores from us while allowing lenders to see what we couldn't.

2.  I've been taking steps to pay back companies listed on my CRs but I wanted an opportunity to open up a positive tradeline

3.  I wanted the chance to re-establish a payment history with a new card that could only be described as positive

4.  The gunk on my EX report would not have allowed me to do that, so I had it frozen

5.  If I had to do it again, I would- since I did, I've been approved for 2 unsecured credit cards from 2 seperate companies, giving me the opportunity to re-establish a positive history with carefully managed tradelines

Ultimately, it's up to you, but nobody is supposed to be able to do a HARD inquiry on your report unless you are actively applying for credit.  Period.  Anything other than that should be considered SOFT.  Afterall, the very definition of a hard inquiry is an inquiry that occurs every time you apply for credit.

[bichonmom]

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@Shellemilyrose wrote:

I didn't have the huge issue of hard credit pulls on my credit report by CAs.  Here is why I froze my EX report:

1.  I was apalled at EX's policy of hiding our FICO scores from us while allowing lenders to see what we couldn't.

2.  I've been taking steps to pay back companies listed on my CRs but I wanted an opportunity to open up a positive tradeline

3.  I wanted the chance to re-establish a payment history with a new card that could only be described as positive

4.  The gunk on my EX report would not have allowed me to do that, so I had it frozen

5.  If I had to do it again, I would- since I did, I've been approved for 2 unsecured credit cards from 2 seperate companies, giving me the opportunity to re-establish a positive history with carefully managed tradelines

Ultimately, it's up to you, but nobody is supposed to be able to do a HARD inquiry on your report unless you are actively applying for credit.  Period.  Anything other than that should be considered SOFT.  Afterall, the very definition of a hard inquiry is an inquiry that occurs every time you apply for credit.

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I"m curious how freezing your EX report allowed you to do these things. It doesn't change what's on your report. My best guess is that your EX rept. had stuff on it that EQ and/or TU didn't, and the CCs you applied for used EQ or TU. Otherwise, I can't see how freezing your EX rept. would affect your ability to get new credit.

ITA about the inquiries, but from posts I've read here, it appears that CAs have "permissible purpose" to do a hard pull. I think it's a way of dinging our score and also showing a CA in the inquiry section that others can see. I think it's completely intentional on their part and shouldn't be legal. But it appears that it is legal... until and unless the laws change.

[Shellemilyrose]

Then I would like you and the moderators to tell me why this definition is given for a hard pull, or a hard inquiry:  http://www.investopedia.com/terms/h/hard-inquiry.asp Thanks.  Has the definition not caught up with the law or is it the other way around?

[bichonmom]

I'm no expert and don't agree with it, but this is cut and pasted directly from my EX credit report in the "inquiries shared w/others" section:

The section below lists all of the companies that have reviewed your credit history as a result of action you took, such as applying
for credit or financing or as a result of a collection. The inquiries in this section are shared with companies that view your credit
history.

Maybe someone with more knowledge would be able to quote something from the FTC.

ETA: Also, per my phone call w/EX, freezing my credit report does NOT prevent CAs from doing a hard inquiry.