topic Re: What should I do? in Credit Cards

What should I do?

Anonymous — Sat, 11 Oct 2008 23:31:49 GMT

I've just opened a basic checking account at BOA - did not sign up for overdraft protection - did not apply for credit. Couple days later I find out they pulled a hard inquiry on experian. They did not disclose it at the time of opening the account. Now I am worried about AA from amex. This brings it to 3 inqs on experian (including the amex) in the last 3 months.

Should I fight this with BOA? has anyone been able to get BOA to change a hard inq into a soft? I am so mad that they did not disclose it before I signed up, I would've walked away - isn't there a disclosure requirement? They have a vague disclosure in the booklet they give customers after the account is opened.

I feel like closing the account and taking my money somewhere else. Any advise?

thanks

Re: What should I do?

wmarat — Sat, 11 Oct 2008 23:38:43 GMT

Unfortunately, banks pull hard when you opening checking or savings. They justify it by Patriot Act and I suspect it is legit.

Regarding Amex. If Amex decides to AA you, they will find reason to do so. Amex giveth, Amex taketh away. So, relax.

Re: What should I do?

Anonymous — Sat, 11 Oct 2008 23:41:23 GMT

Unfortunately, these days, the banks almost always do a hard Inq to open a checking account (and sometimes the savings accounts too). Believe me, BoA disclosed it in the extra fine print, and there's not anything to except take a deep breath and grit your teeth. I bank with BoA too, so I've taken the same hit. The banks cite permissable purpose for the hard pull as being mandated by the Patriot Act, and other such vague reasons. It is what it is, these days.

I wish there were some way to get out of it, but there isn't. It does suck though. Here's hoping that you're able to stay under the radar with Amex!

@Anonymous wrote:
I've just opened a basic checking account at BOA - did not sign up for overdraft protection - did not apply for credit. Couple days later I find out they pulled a hard inquiry on experian. They did not disclose it at the time of opening the account. Now I am worried about AA from amex. This brings it to 3 inqs on experian (including the amex) in the last 3 months.

Should I fight this with BOA? has anyone been able to get BOA to change a hard inq into a soft? I am so mad that they did not disclose it before I signed up, I would've walked away - isn't there a disclosure requirement? They have a vague disclosure in the booklet they give customers after the account is opened.

I feel like closing the account and taking my money somewhere else. Any advise?

thanks

Re: What should I do?

Anonymous — Sat, 11 Oct 2008 23:43:15 GMT

@wmarat wrote:
Unfortunately, banks pull hard when you opening checking or savings. They justify it by Patriot Act and I suspect it is legit.

Regarding Amex. If Amex decides to AA you, they will find reason to do so. Amex giveth, Amex taketh away. So, relax.

when I asked them, they said it was not BOA, they claim they only review ChexSystem. The hard inq says BOA Bank on experian.

Re: What should I do?

jmbfl — Sat, 11 Oct 2008 23:50:03 GMT

Nothing you can do. Opening a bank account is construed as PP for inquiring on your credit. Ascertaining your ID under the Patriot Act is the proferred excuse for doing so. I am not saying I agree with it - just that this is the way things are done. You can ask them to recode the inquiry as a soft, but I doubt they will do it.

Now I have a question for you. How would you like it if people were able to obtain a full consumer credit on you without your knowledge? That is the alternative. The FCRA requires that a record be maintained of all parties who are provided you CBR information for two years. This is at least in part to protect you by allowing you to access a record of all those who inquired on your credit.

Re: What should I do?

wmarat — Sat, 11 Oct 2008 23:50:23 GMT

Look, Max. I think you should take things in right perspective. The only hard I've got from BOA (excluding CC) was when I opened checking with them. Any other account I opened was inq. free and not only for me but for DW also.

I am very pleased by BOA, so far and there is no reason that you won't.

Besides any checking account you open equal to hard pull (with an exeption of Agricultural FCU, pre-Chase WaMu and Valley National Bank).

IMO it is better off starting relationship with BOA (BTW they offer plenty of CC with very generous CL) than thinking what paranoid Amex might or might not do.

Re: What should I do?

Anonymous — Sun, 12 Oct 2008 00:02:00 GMT

@wmarat wrote:
Look, Max. I think you should take things in right perspective. The only hard I've got from BOA (excluding CC) was when I opened checking with them. Any other account I opened was inq. free and not only for me but for DW also.

I am very pleased by BOA, so far and there is no reason that you won't.

Besides any checking account you open equal to hard pull (with an exeption of Agricultural FCU, pre-Chase WaMu and Valley National Bank).

IMO it is better off starting relationship with BOA (BTW they offer plenty of CC with very generous CL) than thinking what paranoid Amex might or might not do.

why couldn't they just disclose it upfront. a hard inq is an important detail for customers to know about it upfront.

Message Edited by Max09 on 10-11-2008 05:02 PM

Re: What should I do?

Anonymous — Sat, 11 Oct 2008 23:57:45 GMT

I heard that inquires due to bank acc opening does not much or probaly no effect on the scores. Not sure about it, this is something I have read in the forum sometime back.

Re: What should I do?

Anonymous — Sun, 12 Oct 2008 00:00:22 GMT

@Anonymous wrote:
why couldn't they just disclose it upfront. a hard inq is an import details for customers to know about it upfront.

I understand what your saying but most big banks do this so if you open another account with another bank depending on who it is it will be another hard inquire. Sometime they don't tell you these things that's why it's always good to ask upfront.

Re: What should I do?

Anonymous — Sun, 12 Oct 2008 00:00:42 GMT

@jmbfl wrote:
Nothing you can do. Opening a bank account is construed as PP for inquiring on your credit. Ascertaining your ID under the Patriot Act is the proferred excuse for doing so. I am not saying I agree with it - just that this is the way things are done. You can ask them to recode the inquiry as a soft, but I doubt they will do it.

Now I have a question for you. How would you like it if people were able to obtain a full consumer credit on you without your knowledge? That is the alternative. The FCRA requires that a record be maintained of all parties who are provided you CBR information for two years. This is at least in part to protect you by allowing you to access a record of all those who inquired on your credit.

I am not sure I understand the question but I do not like it when a bank does not disclose something like this upfront. why hide it in a little booklet they give you after the fact. They did pull the hard inq without my permission or my knowledge. I found out about because I am signed with credit monitoring service.

Re: What should I do?

wmarat — Sun, 12 Oct 2008 00:01:34 GMT

Max, believe it or not but 90% of population have no idea what an inq. is and 5% of the rest 10% can not diffirintiate between hard pull and soft pull. Moreover about half of CSR's who work for banks vagiely know what the difference is.

Voidman

Inq.is inq is inq and it hurts.

Re: What should I do?

Anonymous — Sun, 12 Oct 2008 00:04:02 GMT

@wmarat wrote:

Max, believe it or not but 90% of population have no idea what an inq. is and 5% of the rest 10% can not diffirintiate between hard pull and soft pull. Moreover about half of CSR's who work for banks vagiely know what the difference is.

Voidman

Inq.is inq is inq and it hurts.

lol so true i didn't know the difference until i joined this board.

Re: What should I do?

jmbfl — Sun, 12 Oct 2008 00:04:21 GMT

Max09 wrote: when I asked them, they said it was not BOA, they claim they only review ChexSystem. The hard inq says BOA Bank on experian.

You can be assured they inquired on both. I don't know of any banking institution that will open a bank account for you without looking at ChexSystems. And if you have derogatory information in ChexSystem lots of luck getting opening a bank account. Also, correcting an error in ChexSystems is neigh on to impossible!

I am not saying I agree with the need for a credit INQ to open an account. But the Patriot Act requires a banking institution to ascertain your identity before opening an account for you and there are penalties imposed if they fail to do so. There just should be some other mechanism doing it. On the other hand banks might just want to take a peek at your CBR to make sure you are not going to be a problem for them. I don't have to bend my mind too far around a corner to construe their giving you a bank account as granting you credit.

Re: What should I do?

Anonymous — Sun, 12 Oct 2008 00:04:50 GMT

@Anonymous wrote:
I heard that inquires due to bank acc opening does not much or probaly no effect on the scores. Not sure about it, this is something I have read in the forum sometime back.

worried about AA from my credit card companies. all cc companies are nervous right now and it makes me look like I am looking for credit which i am not. I don't think fico tells the difference between an a hard inq for credit and one for opening a checking account

Re: What should I do?

Anonymous — Sun, 12 Oct 2008 00:04:53 GMT

Wmarat,

I understand that it is an inquire and it can hurt the score. Since I remember reading it clearly by one of the senior posters on this forum that inq from banks does not have the same affect as inq while opening a credit account.

Just like an Inq can be coded as soft or hard, I guess it can also be coded as the reason for the inq, i.e. bank acc open or credit acc open.

Re: What should I do?

Anonymous — Sun, 12 Oct 2008 00:07:45 GMT

@wmarat wrote:

Max, believe it or not but 90% of population have no idea what an inq. is and 5% of the rest 10% can not diffirintiate between hard pull and soft pull. Moreover about half of CSR's who work for banks vagiely know what the difference is.

Voidman

Inq.is inq is inq and it hurts.

you are absolutely right. when I went back to the bank to ask the question, the teller had no idea what a inquiry was. she had a blank look on her face.

Re: What should I do?

Anonymous — Sun, 12 Oct 2008 00:14:39 GMT

@jmbfl wrote:
Max09 wrote: when I asked them, they said it was not BOA, they claim they only review ChexSystem. The hard inq says BOA Bank on experian.
You can be assured they inquired on both. I don't know of any banking institution that will open a bank account for you without looking at ChexSystems. And if you have derogatory information in ChexSystem lots of luck getting opening a bank account. Also, correcting an error in ChexSystems is neigh on to impossible!

I am not saying I agree with the need for a credit INQ to open an account. But the Patriot Act requires a banking institution to ascertain your identity before opening an account for you and there are penalties imposed if they fail to do so. There just should be some other mechanism doing it. On the other hand banks might just want to take a peek at your CBR to make sure you are not going to be a problem for them. I don't have to bend my mind too far around a corner to construe their giving you a bank account as granting you credit.

It is interesting that the bank is not even citing Patriot Act - all they are saying is they need to review ChexSystem to look for bad checks - that's about it. I would think citing the Patriot Act would be an easy way to close the issue with a customer

Re: What should I do?

jmbfl — Sun, 12 Oct 2008 00:24:01 GMT

@Anonymous wrote:
It is interesting that the bank is not even citing Patriot Act - all they are saying is they need to review ChexSystem to look for bad checks - that's about it. I would think citing the Patriot Act would be an easy way to close the issue with a customer

They never do - and they always pull your credit!

The need to pull ChexSystems is obvious.

If you feel it is neccessary get on the phone and speak with a supervisor and ask them to recode the inquiry as a soft. As I previously stated I very much doubt they will do it, but there is no harm in asking. Somewhat emphatically in that's what it takes!

Re: What should I do?

wmarat — Sun, 12 Oct 2008 00:24:08 GMT

Voidman

I am not a senior poster, let alone an expert, but IME any inq. equally hurts with 2 exeptions.

Morgage inq's are counted as one (2 weeks window)

Auto loan inq's are ciounted as one (not sure regarding window). JMHO.

Re: What should I do?

wmarat — Sun, 12 Oct 2008 00:27:40 GMT

JMBFL.

As far as I understand Patriot Act does not require to pull credit report. There are plenty of means to verify applicants' identity.(DL, passport, notorized statement from parents etc.)