Inquiries in BK & Paypal inquiries

[Anonymous]

I have a few questions about inquries not directly related to this post. I ordered my complete credit report and found an inquiry from myy credit union that was included in my bankruptcy. The inquiry was made last year while I was in the middle of my bankruptcy. I had not sought any new credit while I was in bk and I have no idea why they would do an inquiry. Is this legal? Can I seek to have this removed? 

I also have three inquiries from Paypal when I started a business. I am using Paypal as a merchant account to collect payments from my websites. I took three hits for inquiries in the last 2 years when I wasnt seeking approval for credit. Is there anything I can do with these inquiries?

StartingOverAgain, I split your post into a new thread here. - llecs

Message Edited by llecs on 10-31-2008 03:25 PM

[llecs]

It is legal for the credit union to add inquiries, but I would call them to see what it was for. Most financial institutions now will ding you for an inquiry if you open checking or savings account. But I would call them to see what it was for.

As with your CU, I would contact Paypal to see what the inquiries are for. I've heard of people getting dinged for signing up for CC processing services, like with Paypal. But 3 is a bit too much.

Remember, inquiries only hurt your score for the first year. Any inquiries beyond 1 yr are not factored into your score. Any other inquiry will drop off at the 2 yr mark. And the damage is very minimal, if at all. I've gone from 0 to 1 and 1 to 2 on TU and never took a hit. My EX has 35 of them, and 10 of the 35 did not hurt my score at all when pulling immediately prior and right after apping. Most, if any damage, occurs when your score is in the upper 700s, 800s.

[Anonymous]

There was no reason for the credit union to make an inquiry. The credit union was part of my bankruptcy and the only purpose for making an inquiry (2 years into bk) is to damage my credit more. I thought it was illegal to make an inquiry other then for cause (loan, rental, etc). I live in a small town and they seemed to take it personal. I had considered repaying them in full now that my bankruptcy was complete, but now they just better hope I dont take a more adverse course of action. I wanted to apply for another credit card soon, and I dont want all these inquiries to hurt my chances.

[llecs]

If you did around there's a letter in here called the "non-pp" letter or the non-permissible purpose letter. It tells the CA/OC to remove an unauthorized inquiry. Search "non-pp" and I bet you'll find it.

[Anonymous]

I'm not sure what effect the bankruptcy would have on this, but I believe that if you had an open account with this creditor then they can basically pull credit on you whenever they want within reason.  This is a portion of the permissible purpose portion of FCRA

§ 604. Permissible purposes of consumer reports [15 U.S.C. § 1681b](a) In general. Subject to subsection (c), any consumer reporting agency may furnish a

consumer report under the following circumstances and no other:

(1) In response to the order of a court having jurisdiction to issue such an order, or a

subpoena issued in connection with proceedings before a Federal grand jury.

(2) In accordance with the written instructions of the consumer to whom it relates.

(3) To a person which it has reason to believe

(A) intends to use the information in connection with a credit transaction

involving the consumer on whom the information is to be furnished and

involving the extension of credit to, or review or collection of an account

of, the consumer; or

Under section 3 part a I don't think the creditor would have any difficulty arguing that they pulled your credit with the purpose of reviewing or trying to collect your account.  A nice PDF of the FCRA can be found at http://www.ftc.gov/os/statutes/031224fcra.pdf.

[Anonymous]

The first question to ask is whether it was an inquiry visible to others (hard) or not (soft).

Creditors and account holders have full rights to the latter, which do not affect credit scores.

[Anonymous]

I dont see what reason the credit union would have (2 years into bk) for running a credit check. My accounts were closed for two years at the time. It comes up as a negative on my credit report, so it is something thats getting me dinged. Since they are included in the bk, what purpose would there be for running a credit check.

[Geordi]

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@Anonymous wrote:
I dont see what reason the credit union would have (2 years into bk) for running a credit check. My accounts were closed for two years at the time. It comes up as a negative on my credit report, so it is something thats getting me dinged. Since they are included in the bk, what purpose would there be for running a credit check.

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With all due respect, it would be better to ask the loan department of your credit union.

I know that people like to test their questions in forums before going directly to a particular lender/creditor.  However, we can only guess what is happening but if you are persistent enough, you can get a direct answer from your CU.

GL

[Anonymous]

i can only recommend to read through this site and come back with enough information and a question narrower than that, and hopefully you'll get a meaningful answer