Could Strangle Scottrade

[smallfry]

I transferred a smallish IRA over to them in March. Bear in mind I have had other accounts with them for well over 10 years. Never pulled a credit report even for margin and options. Long story short they pulled EQ hard March 26th for an IRA account. Ridiculous since they have no risk and aren't lending me any money. That's another story. Fought with credit dept they refuse to recode as a soft pull. I told them it better be the last time they pull he tells me they reserve the right to do it again yada yada. Question is since they are not actually a creditor if I were to freeze my EQ could they pull me hard again? They do not appear on my report other than as a hard inq. Really pizzed. Local branch mgr was no help at all though he was sympathetic. I threatened to move other accounts already. Can I freeze them out?

[Junejer]

If you put EQ on ice, then no one will be able to pull your report from there. I think that they want to make sure that you aren't insolvent or something. Many banks also do that to open accounts. Sux.

[smallfry]

So then technically they are not a creditor then even though I have an account with them though not in the traditional manner of a credit card, mortgage or a car loan? Now I have to pay $25 a year so these creeps don't pull me for laughs?

[Junejer]

Looks that way. Once you give over that SSN, I am sure that there is some fine print that you give them permission to pull your credit.

[Anonymous]

Yes a Freeze would block them out.

[smallfry]

Goodbye Scottrade.

[RobertEG]

The FCRA is very specific,  Unless the consumer gives express consent to a CR inquiry, they cannot do what we refer to as a hard pull.  Hard pulls are only for consumer AUTHORIZED request for new credit, or a requested increase of existing credit.  Hard pulls for other reasons (with exclusions, such as  when granted for national security concerns) are prohibied by law under the FCRA!

Are you a sustpected terrorist?  LOL!

Civil violation of law 101..

Message Edited by RobertEG on 06-01-2008 02:04 AM

[RobertEG]

The FCRA (Fed ;law):

Furnishing reports in connection with credit or insurance transactions that are not initiated by the consumer.

(1) In general. A consumer reporting agency may furnish a consumer report relating to any consumer pursuant to subparagraph (A) or (C) of subsection (a)(3) in connection with any credit or insurance transaction that is not initiated by the consumer only if

(A) the consumer authorizes the agency to provide such report to such person;

or

(B) (i) the transaction consists of a firm offer of credit or insurance;

(ii) the consumer reporting agency has complied with subsection (e); and

 (iii) there is not in effect an election by the consumer, made in accordance with subsection (e), to have the consumer's name and address excluded from lists of names provided by the agency pursuant to this paragraph.

(2) Limits on information received under paragraph (1)(B). A person may receive pursuant to paragraph (1)(B) only

(A) the name and address of a consumer;

(B) an identifier that is not unique to the consumer and that is used by the

person solely for the purpose of verifying the identity of the consumer; and

(C) other information pertaining to a consumer that does not identify the

relationship or experience of the consumer with respect to a particular creditor

or other entity.

(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.

[smallfry]

Well Robert who knows why or how but the inquiry went away. Risk management told me they needed to pull an Equifax score. Imagine that. You need to know my score for an IRA account which is all cash? After I have been a customer for how many years now and you reserve the right to pull it again any time you see fit? I don't think so.
I think FICO needs another category for insurance and other non credit seeking inquiries if they intend to score them. I was most definitely not seeking new credit.

[RobertEG]

The fact that a party requested or obtained your confidential information does not, ipso facto, make it legal. Just ask Richard Nixon!  Soon to be ex-spouses routinely do this, illegally, during divorce proceedings.  It is an ugly world.

With no legitimate reason to make a hard pull, the party is in violation of law.  I would simply send them a very stern letter that any further such action on their part will be considered by you as a violation of the FCRA, and thus subject them to legal action.  That should quell their propentency to pull!

I would not block them out.  I would serve notice on them not to do it again, and if they do, sue their ASSets off!

Message Edited by RobertEG on 06-01-2008 05:25 PM