Unauthorized HP

[CreditJim]

I noticed that a HP has popped up from my bank, a credit union. I haven't applied for any loans or credit cards with them. Is there anything I can do about this?

[09Lexie]

Have you contacted them and ask to have them remove it? Did you open a checking /savings account?

[takeshi74]

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@breedo wrote:

I haven't applied for any loans or credit cards with them.

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Keep in mind that loans and credit cards aren't the only permissible purposes for a credit pull.  See also section 604 of the FCRA.

[RobertEG]

+1

A business has permissible purpose to pull your CR if you initiate a business transaction with them, and that transaction gives rise to a legitimate business need to review your credit.  That is a specific permissible purpose listed under FCRA 604.  If an inquiry has a permissible purpose listed under section 604, the entire intent of that listing is to give authorization without need for express consumer approval.  Elsewise, business and credit ransactions would come to a screeching crawl.

[Kratos-TM]

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@RobertEG wrote:

+1

A business has permissible purpose to pull your CR if you initiate a business transaction with them, and that transaction gives rise to a legitimate business need to review your credit.  That is a specific permissible purpose listed under FCRA 604.  If an inquiry has a permissible purpose listed under section 604, the entire intent of that listing is to give authorization without need for express consumer approval.  Elsewise, business and credit ransactions would come to a screeching crawl.

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Yes they should have the right to see your credit........BUT that sucks.......because your "worthiness" should not be lowered because you are doing business with someone, it should only be lowered by you seeking credit. Such as taking a ding in score when you get your lights turned on or get a phone.

They should have the right to view your file, but it shouldn't count against your score.

[CreditJim]

I use them as my main checking account, and have done for the past 2 years. No new applications of any kind with them, haven't enquired about anything, literally no reason for them to have pulled my credit.

[RobertEG]

I agree with your logic.

However, the primary purpose of maintaining credit reports is to sell them to their real clients... the business and credit industry...., and to promote the efficient handling of business and credit transactions.  Thus, you are not apt to get much sympathy from the industires or the CRAs, as the premissibility of such inquires has a busness purpose from their perspective.

The real party at issue in using business transactions is not their obtaining CRs for those purposes, but rather the conclusion by Fair Isaac that they somehow effect the risk of becoming delinquent on existing accounts, and thus should be included in their scoring.  Personally, I dont see the connection as it applies to their risk analysis........

[CreditJim]

I got to the bottom of it by, funnily enough, calling them. Apparantly in the terms and conditions of their credit card which I've had with them for a couple of years, they pull your credit every year to review to see if you're still eligible etc. Kind of crazy really because surely after 2 years that I've had the card they'd know if I'm reliable or not and I've never missed a payment with them (I don't use the card). When I got it 2 years ago, it was my highest limit card at $1k, but it's dwafed now by other cards of $15k, $12k etc. The rep told me the only way to avoid it would be to close the credit card account. I asked her if I could apply for an increase based on the report that they just pulled, she said I could. I've asked for $15k to match my other highest limit. I figured if I've already taken the hit for an inquiry I may as well try to get something out of it. She's going to phone me with the outcome.

[CreditJim]

Update: approved for the $15k. I wasn't happy about the HP but I guess a CLI from $1k > $15k lessens the pain!

[09Lexie]

Congratulations...well worth a HP!