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Unauthorized credit pull quesiton

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bournesto33
Established Member

Unauthorized credit pull quesiton

Good evening,

 

Can a loan company pull you credit without your consent (hard pull) to get updated information from you.  My parents have a small loan that they are two months past due.  I have a POA on my mother and I questioned the manager why he pulled my moms credit.  He stated that it was to get updated information and he had the right to.  I asked if it was in any contract and he stated it wasnt but as a creditor he has the right to pull her credit.  Is this true?  Should I seek legal advice on her behalf?


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Current Score: 579
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Message 1 of 6
5 REPLIES 5
FinStar
Moderator Emeritus

Re: Unauthorized credit pull quesiton


wrote:

Good evening,

 

Can a loan company pull you credit without your consent (hard pull) to get updated information from you.  My parents have a small loan that they are two months past due.  I have a POA on my mother and I questioned the manager why he pulled my moms credit.  He stated that it was to get updated information and he had the right to.  I asked if it was in any contract and he stated it wasnt but as a creditor he has the right to pull her credit.  Is this true?  Should I seek legal advice on her behalf?


It's not without consent if it's permissible purpose.  I would suggest locating and reviewing the fine print associated with the loan contract or installment loan agreement that your parent(s) signed just to make sure.  If there's a section that reads something similar or along the lines of "You authorize "Loan Company X" to make inquiries and obtain information about you as we deem appropriate for the purpose of evaluation this application, and for any update, renewal, or extension of the credit received, including obtaining credit reports,..." then, that's the permissible purpose being exercised given the current status of the loan.

Message 2 of 6
RobertEG
Legendary Contributor

Re: Unauthorized credit pull quesiton

The FCRA is structured to permit pulls of consumer credit reports without express consumer authorization if the purpose of the inquiry is one or more of the "permissible purposes" that are set forth under FCRA 604.  Otherwise, the approval of credit and business transactions would creep to a near-halt.

 

An existing creditor has express permissible purpose to pull the credit report of their existing customers in order to review their current credit standing and make internal account decisions.  See FCRA 604(a)(3)(F)(ii).

 

The issue of whether the inquiry is coded as soft or hard depends upon either the type of inquiry, or in some cases, the request of the inquiree.  When making an inquiry without express consumer authorization, the inquiree is required to provide a statement of their permissible purpose, which is one or more of the subsections of section 604.

If the stated permissble purpose is for an internal review by an existing creditor, the CRA policy is that the inquiry will be coded as soft, meaning it will only show in credit reports issued to the named consumer, and it cannot appear in reports issued to others.

 

Yes, they have permissible purpose.

No, it will not affect credit score or appear in a credit report provided to others.

 

Message 3 of 6
bournesto33
Established Member

Re: Unauthorized credit pull quesiton

Thank you so much, it was a hard pull and the reason that was given to me was to find new contact information....that was it


Starting Score: 490
Current Score: 579
Goal Score: 680


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Message 4 of 6
heyryan
Frequent Contributor

Re: Unauthorized credit pull quesiton


wrote:

Thank you so much, it was a hard pull and the reason that was given to me was to find new contact information....that was it


It's odd that they'd choose to do a HP instead of a SP, but they have the right. I've heard of Comenity doing this to people before they take AA/close accounts. Seems a bit petty to me!

Personal:

 
Business:


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Message 5 of 6
JVille
Valued Contributor

Re: Unauthorized credit pull quesiton

Yes they have the right particularly in the event of a delinquent account.
Message 6 of 6
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