Example of what is, at least to me, a mystery.
The FCRA requires only that a party provide a statement of permissible purpose.
CR inquiries are not reporting of information to a CRA, but rather just the opposite.... a request to see the reporting of otheres.
When a CRA receives an inquiry with a permissible purpose, there is no requirement that they provide a code.
Does the CRA determine the relevant code based on the stated permissible pupose if no coding is specified?
If so, any consumer inititated request for credit or insurance would always be coded as "hard," as that is the very type of information that credit report inclusion was intended to provide to others who wish to review a consumer's credit file.
So, if coding is determined by the inquiree rather than the CRA, is there some system of codes provided to inquirees that permit them to determine and instruc the CRA as to how to code the inquiry? I have never seen such a listing or description of such a coding system. Is there, for example, a specified code that says, in essence, "Inquiry if for the permissible purpose of a consumer initiated request for credit, but dont post this inquriy in the consumer's credit report"? Or do they provide a stated permissible purpose that is other than the real purpose?
A very subjective system that is a mystery, at least to me.
Similarly, if a prior inquiry has been coded as "hard" and the inquiree wishes to change it to "soft," how is that done?
Do they change their stated permissible purpose, or do the CRAs simply permit parties to make such a decision without any basis?
