@RobertEG wrote:
There is no distinction under the FCRA as to the coding of a credit inquiry as "soft" or 'hard." A permissibe pull is a permissible pull. TheFCRA never mentions those terms.
Credit inquiry codes are the creation of the CRAs for better representing the reason for a credit inquiry. A hard pull, in actuality, is an inquiry code that FICO includes in their scoring, while a "soft" pull is an inquiry code that they choose not to include.
If the inquiree presents a reason for permissible pull, it depends upon the code they report it under. They quite often have an option. If the code they use accurately reflects their reason for access, it is not disputable. Inquries for purposes of underwriting insurance are specfically authorized by FCRA 604.
It is up to the inquiree.
Actually the FCRA does.
Although the terms "soft" and "hard" are not used, the concept of inquiries that are not viewable by others is introduced. By definition, a "soft" inquiry is one that cannot be shown to other entities other than the consumer.
§ 604. Permissible purposes of consumer reports [15 U.S.C. § 1681b]
(c)(3) Information regarding inquiries. Except as provided in section 609(a)(5)
[§1681g], a consumer reporting agency shall not furnish to any person a record of
inquiries in connection with a credit or insurance transaction that is not initiated
by a consumer.
Now, before you argue that obtaining a quote for an insurance policy is a transaction initiated by the consumer, the fact is that it is not. A transaction exists only when there is clear evidence that a sale is likely. Obtaining a quote -- much like asking a car dealer how much a car costs -- is not a consumer initiated transaction.
