2 Hard Pulls for same transaction

[Anonymous]

Hey... I got a pickle here.

Back in early November I applied for financing.

Got approved and obviously a hard pull was done. Expected.

Earlier today the company I purchased from tells me that

the finance company needs to "recheck" my credit.

So what does that mean? Another pull. Now I have 2

pulls about a month apart for the same thing.

My score dropped 30pts just before with Transunion.

Can I fight this? It's for the same item to be purchased.

I can see if I was doing something else but not for the same thing.

I mean I read where you can do a bunch of loan apps and its considered

as one.

Agitated, now I dont want my baked potato!

Thanks

Ronnie

[Anonymous]

Sounds like BS to me.  Is this a reputable company? 

A HP is for an application for credit.  After you applied the first time, that should be it.  If 30 days in they need to "check" your credit again, there's no reason they can't SP just like many lenders do every 30 days or so on a customer.  There's absolutely no need for a second HP unless you were requesting new credit or in some cases additional credit.

[RonM21]

BBB makes a good point about how once the lender has access to your credit from the initial app and HP, they should be able to access your credit for their needs after that. I'm thinking that either way, you have an argument on your end. What if when they told you that, you had said "no?" Then what would they have done, or what could they have done? I'm not aware of one, but I would hope there is not some sort of strange loophole where they are allowed to do this.

The flipside is I know with certain loans or even mortgages, it is not uncommon for there to be an initial credit pull upon application, and there could be a second pull before closing.

Who is the company and if you do not mind, what in general was the financing for? This would maybe help a bit in trying to figure this out.

[Anonymous]

OK the scenario,

Purchasing a 8.5 x 20 Cargo trailer from ProLine

Oct 31st I submitted my application for credit to finance.

Sheffield Financial approved my financing, my credit is very good

and I know I would take a HP hit. Fine.

Gave my deposit and got the ball rolling.

7.49% for 24mos. - Lowest % allowed.

Yesterday, Proline calls me to let me know my trailer done

and will be ready for pickup within next week.

Also told that I need to get the paperwork finalized

and that Sheffield needs my permission to re-check my credit.

So I said yes, probably a mistake but I was caught off guard

with daily life activities.

Then I get a batch of emails from all these different companies

alerting me of a credit action. Honestly I thought nothing of it.

Is there a timeline of some sort to allow that? I mean its for the

same thing. I've already setup with Sheffield, signed a contract

w/ ProLine & Sheffield involved.

I was not told beforehand that another credit was going to happen.

I thought I was locked in already. No?

I like my good credit, It went from mid 800's to 790's now.

Yes, that is a blow to me. I worked long & hard for that status

and actually to some, I do not consider it petty. Yes, I probably

would come out of it eventually but this particular scene isnt right.

Least that what I think. Behind it all, I've never run into a situ like this

and maybe its something to learn. No, I did not ask why.

So this morning I am looking through all all of my emails

and most likely will call Sheffield about this. They might do much

but I'll call for concerns of the matter.

Am I able to throw in a fight here? Or just deal w/ it?

[Anonymous]

Again, there's no reason they couldn't just SP you the second time around to "re-check" your credit.  You applied for credit 1 time, so you should be hit with a hard inquiry 1 time.  If that's not the case, I'd tell them you want a request sent to the bureau to remove the second [unnecessary] hard inquiry.

[FinStar]

OP, what does the fine print state in your application when you initially submitted for financing with Sheffield?

Not all companies, especially specialty finance ones, work the same way as others in coding a secondary pull as a SP.

It all depends on the stipulation of the contract. When you submitted for financing, was it like a LOI, almost like a pre-approved amount until the product was finalized? If so, then some financing companies may repull (if beyond 30 days) from the initial submission. It is permissible, but you'd have to see what your initial application states (if you kept a copy).

[Anonymous]

OK...

OP, what does the fine print state in your application when you initially submitted for financing with Sheffield?

There was no fine print for Inquiries of any sort. I just filled out the credit form and submitted

Not all companies, especially specialty finance ones, work the same way as others in coding a secondary pull as a SP.

Maybe it should have been reversed, do the softie first then hard afterwards?

It all depends on the stipulation of the contract. When you submitted for financing, was it like a LOI, almost like a pre-approved amount until the product was finalized? If so, then some financing companies may repull (if beyond 30 days) from the initial submission. It is permissible, but you'd have to see what your initial application states (if you kept a copy).

LOI ? where is the abbreviation list?

I go to the Credit Application link and filled it out. Then gave my deposit

after being told from the dealer I was approved. Also told that I need to call

Sheffield so they can verify my purchase, run credit and personal info. With that call,

Im told I was recorded and was NOT told that my credit check had an experation

timeline. Maybe a week or so goes by so I asked the dealer when I will be getting

a bill to start paying. He said that I wont be billed until the trailer is built. So a month

passes ( 11/2~12/8 ). I wrote above how that went.

I call Sheffield and they said that my credit inquiry expired. That was the reason for the

2nd approval for them to re-pull my report. I was not told of this in any which way or form.

Not in writing nor a recorded phone call.

The form that Sheffield provided me no where states of an expiring credit inquiry.

Here I thought everything is hunkie dorie and I will get my monthly bill.

Shouldnt they have done a soft pull first?

There seems to be alot things missing here though.

No disclosures on the dealer website about credit and the financial details.

Having to call Sheffield for approval to run a credit check. Not being told

that it can expire after a period of time. Not everyone knows of this. Now I do.

After the second call, the guy said "Well you agreed to re-check my credit"

thats it. He himself did not say anything about it. Just that I agreed. Thats BS.