topic Re: Bank doing hard pulls in General Credit Topics

Bank doing hard pulls

Anonymous — Tue, 25 Nov 2008 04:54:47 GMT

My brother's girlfriend told me her bank does a hard pull on her Equifax if she is overdrawn on her checking account. Is this permissible?

She doesn't have a cc tied to this account, and there isn't any sort of overdraft protection plan either. They either pay her transactions and impose fees, or just impose the fees without paying.

Allowed or not? She wants to buy a car and is worried about all these inqs showing up, like she's been applying randomly for loans and getting denied.

Re: Bank doing hard pulls

Anonymous — Tue, 25 Nov 2008 06:01:37 GMT

tell her to go to the bank manager and complain politley ( and evntually loudly if necessary ) about it. bring a copy of the report to show it's not a "soft account review inquiry".

Re: Bank doing hard pulls

Anonymous — Tue, 25 Nov 2008 15:54:00 GMT

I'm not sure about hard pulls, but I'm pretty positive that the bank agent was referring to soft pulls. Hard pulls are only used when consumers are seeking new credit or in rare instances, credit limit increases. But if they were doing hard pulls just for that, I think that is quite ridiculous. But when she signed the contract, she probably signed away to a clause stating stating "you authorize us to view financial history from credit reporting agencies if..." etc etc. If not, then its uncalled for a hard pull.

Re: Bank doing hard pulls

MidnightVoice — Tue, 25 Nov 2008 16:08:49 GMT

@Anonymous wrote:
My brother's girlfriend told me her bank does a hard pull on her Equifax if she is overdrawn on her checking account. Is this permissible?

Making a guess, I would say it is permissible as an overdraft is a credit transaction

Re: Bank doing hard pulls

Anonymous — Tue, 25 Nov 2008 16:31:36 GMT

ahahahahaah!!!

NO! a hard pull is completely impermissible in this case - there is no new credit\insurence request transaction initiated by the consumer - I don't know how or why would an overdraft qualify to be one.

I believe that the bank already does soft pulls every month or every other month - they have all the information then and there already - nothing missing - the only reason for a hard pull is to flag TO OTHERS one's search for NEW credit or insurance.

Just complain to the bank manager and make sure he\she understands you are serious about getting this violation corerected. For them is very simple to recode to soft (which they are entitled to).

Re: Bank doing hard pulls

Junejer — Tue, 25 Nov 2008 16:32:24 GMT

I would say that it's quite excessive to pull one's credit every time there is an OD. Again, they probably had her sign away on it in teeny-tiny bank print, but that certainly doesn't make it ethical.

I agree with demed--make some noise, if necessary. At the very least, I would ask for an ODP line WITHOUT a new INQ.

Re: Bank doing hard pulls

MidnightVoice — Tue, 25 Nov 2008 16:36:11 GMT

I agree it is excessive and immoral, but writing a check for more money than one has in one's account could be construed as a request for new credit

Re: Bank doing hard pulls

Anonymous — Tue, 25 Nov 2008 16:51:31 GMT

How so? please enlighten me?

Re: Bank doing hard pulls

Anonymous — Tue, 25 Nov 2008 16:53:53 GMT

@Junejer wrote:
I would say that it's quite excessive to pull one's credit every time there is an OD. Again, they probably had her sign away on it in teeny-tiny bank print, but that certainly doesn't make it ethical.

I agree with demed--make some noise, if necessary. At the very least, I would ask for an ODP line WITHOUT a new INQ.

She certainly signed, she signed for them to do Soft pulls, account review inquiries on a regular basis - these inquiries provide exactly the same information of the hard inquiries.

Pulling inquiries visible to others is regulated - there is no justification - it is not immoral, it is illegal.

Re: Bank doing hard pulls

MidnightVoice — Tue, 25 Nov 2008 17:00:31 GMT

@Anonymous wrote:
How so? please enlighten me?

This person is asking the bank to loan them money. Is that not "an application for new credit"?

Re: Bank doing hard pulls

Junejer — Tue, 25 Nov 2008 17:19:23 GMT

I have recounted this timeline ad-nauseum on these forums, so forgive me if you've read it before.

When I first got into the banking business, there were hard pulls for loan products only. Then, around a decade or so ago, it became en vogue to do hard pulls for new customers asking for checking accounts. Then, it became part of the operating system, whereby the banker couldn't even override it. So, current customers got hit with it as well. Then, they got savings accounts in on the act.

Since the Patriot Act has been introduced, banks have taken liberties, even to the point of stating that it is by law that they must "know who their customer is", therefore, we are hard pulling everyone. Unfortunately, that's what they are standing behind--legally or illegally. And, until enough challenges to that action takes place, they are going to continue to do so.

I don't think that a bank should have PP on things like opening accounts without credit attached to them and such, but I don't see those practices changing anytime soon.

Re: Bank doing hard pulls

Anonymous — Tue, 25 Nov 2008 20:10:54 GMT

@MidnightVoice wrote:
@Anonymous wrote:
How so? please enlighten me?

This person is asking the bank to loan them money. Is that not "an application for new credit"?

Nope, it's not - it's a normal transaction part of the checking account contract. It's illegal and should not be condoned.

Re: Bank doing hard pulls

Anonymous — Tue, 25 Nov 2008 20:13:45 GMT

Opening an account is ground for a Hard pull, as long as the checking account offers some degree of credit - a line of credit or overdraft limit.

The Patriot Act line is 100% BS, just ask them to show you the rules and regulations where this is prescribed.

Re: Bank doing hard pulls

MidnightVoice — Tue, 25 Nov 2008 20:15:13 GMT

demed wrote:
Nope, it's not - it's a normal transaction part of the checking account contract. It's illegal and should not be condoned.

My bank does not consider it "normal" for me to spend other people's money

Re: Bank doing hard pulls

Anonymous — Tue, 25 Nov 2008 21:45:06 GMT

You guys are full of knowledge and opinions!

I'll tell her to go talk to the bank about it. She did say there wasn't a separate overdraft account, but I do understand the bank doing soft pulls. My opinion would be that even if you go overdrawn, you are not actually requesting credit, but I'm not a banker.

Thanks!

Re: Bank doing hard pulls

Junejer — Tue, 25 Nov 2008 22:38:12 GMT

demed wrote:

Opening an account is ground for a Hard pull, as long as the checking account offers some degree of credit - a line of credit or overdraft limit.

The Patriot Act line is 100% BS, just ask them to show you the rules and regulations where this is prescribed.

Oh, I agree, as you will find in my other posts about this subject. Banks are hiding behind it, as a way to hard pull. Before the PA, a few banks were hard pulling, now most of them are doing it and are using the PA to justify it. If they would be challenged on it (in court) enough times, then they would change those habits, IMO.

Re: Bank doing hard pulls

Anonymous — Wed, 26 Nov 2008 02:30:15 GMT

@MidnightVoice wrote:
@Anonymous wrote:
Nope, it's not - it's a normal transaction part of the checking account contract. It's illegal and should not be condoned.

My bank does not consider it "normal" for me to spend other people's money

When I open my checking accounts I agree on an overdraft protection, and\or an overdraft limit and\or a line of credit.

99.999% of accounts have one flavor or another of these - I feel sorry for you if your bank doesn't grant you one. LOL.

Re: Bank doing hard pulls

MidnightVoice — Wed, 26 Nov 2008 02:40:56 GMT

@Anonymous wrote:

When I open my checking accounts I agree on an overdraft protection, and\or an overdraft limit and\or a line of credit.
99.999% of accounts have one flavor or another of these - I feel sorry for you if your bank doesn't grant you one. LOL.

Ok, I will be nice one last time and then give up.

To quote the OP " She doesn't have a cc tied to this account, and there isn't any sort of overdraft protection plan either. They either pay her transactions and impose fees, or just impose the fees without paying. "

Does that solve your problem? And whilst I don't mind you laughing at me, I think you should grovel and apologize to the OP for such insults

Re: Bank doing hard pulls

Anonymous — Wed, 26 Nov 2008 03:14:51 GMT

Midnight, no reason to take it personally - I didn't mean to be rude - i'm writing few posts in hurry and didn't pay enough attention to niceties. in any case, no cc and no overdraft don't mean a check is a request for credit.

what her bank did is wrong and remains wrong.

if you want an apology for the sarcastic tone, i apologize - my bad.

Message Edited by demed on 11-25-2008 07:14 PM

Re: Bank doing hard pulls

Junejer — Wed, 26 Nov 2008 05:21:55 GMT

You guys have "kissed and made up", so to speak, so I will jump back in here and play it from the bank's point of view, which is this: an overdraft IS an unsecured/unauthorized loan. If they pay your OD as a courtesy, in effect, they are extending a loan to you, because they have to believe that you are going to bring the account back to positive status (pay the loan).

That said, I still don't think that there is any way that, IF CHALLENGED, banks could win a PP lawsuit on these types of things.