topic Permissible Purpose - Please Clarify if Possible in Credit Cards

Permissible Purpose - Please Clarify if Possible

Anonymous — Mon, 05 Apr 2010 19:34:18 GMT

is there a steadfast "rule" as to when a creditor can pull your report (hard inquiry)? Here is my issue. Have a LOC with HFC. My pay dates changed so therefore I have been making my payments about 10 days late. I started getting notifications via True Credit stating new inquiries. I hadn't applied for any new credit, so I was amazed when I see the inquiries from HFC and I have not asked them for any additional credit or to increase the line of credit on my LOC. Fast forward to today: I have inquiries on EX/EQ every month since Dec 2009 and 1 on TU.

When I look up the FCRA definition for permissible purpose, it lists the following as 2 of the 8 permissible purposes:

For an account review. Your existing lenders are legally allowed to periodically pull your credit reports for account review purposes.
In an attempt to collect a debt. If you default on a loan or owe an unpaid debt, lenders and/or debt collection companies have the right to pull your credit reports for the purpose of collecting a debt.

SOOOO am I in error for assuming (and we know what happens when one assumes) that companies do a soft pull for credit review? Any feedback or direction will be helpful. They are killing my report with these inquiries.

I posted this in Rebuilding Your Credit also because I wasnt sure where it should go and to gain more possible responses. I apologize in advance if that should not be done.

Re: Permissible Purpose - Please Clarify if Possible

score_building — Mon, 05 Apr 2010 20:23:35 GMT

While it is neither necessary nor customary for current lenders to pull a string of hards in this way...

As a current lender, they do technically have PP to pull hard or soft at any time at their sole discretion.

Contact them to request recoding to SP as a customer courtesy, also freezing reports can help prevent further damage.

Re: Permissible Purpose - Please Clarify if Possible

wmarat — Tue, 06 Apr 2010 02:00:18 GMT

@Anonymous wrote:
is there a steadfast "rule" as to when a creditor can pull your report (hard inquiry)? Here is my issue. Have a LOC with HFC. My pay dates changed so therefore I have been making my payments about 10 days late. I started getting notifications via True Credit stating new inquiries. I hadn't applied for any new credit, so I was amazed when I see the inquiries from HFC and I have not asked them for any additional credit or to increase the line of credit on my LOC. Fast forward to today: I have inquiries on EX/EQ every month since Dec 2009 and 1 on TU.

When I look up the FCRA definition for permissible purpose, it lists the following as 2 of the 8 permissible purposes:
For an account review. Your existing lenders are legally allowed to periodically pull your credit reports for account review purposes.
In an attempt to collect a debt. If you default on a loan or owe an unpaid debt, lenders and/or debt collection companies have the right to pull your credit reports for the purpose of collecting a debt.
SOOOO am I in error for assuming (and we know what happens when one assumes) that companies do a soft pull for credit review? Any feedback or direction will be helpful. They are killing my report with these inquiries.
I posted this in Rebuilding Your Credit also because I wasnt sure where it should go and to gain more possible responses. I apologize in advance if that should not be done.

Yes you are. Though it is customary to pull soft for AR, current lender has right to pull hard.

If I am not mistaken, multiple hard inq.'s from the same lender made in short period of time can be disputed with CRA and deleted.

Re: Permissible Purpose - Please Clarify if Possible

Anonymous — Tue, 06 Apr 2010 23:09:59 GMT

Thank you for your responses. I did contact the CRAs and was advised inquires can not be disputed as they are "factual". I was advised to contact the lender (which i did) and they would need to to contact the bureau to remove. I guess this is a new tactic to get consumers to pay on time if they are mindful of their credit