Creditor doing inquiry after filing. Is this allowed?

[ThreadsSnapping]

We filed a Ch. 7 on June 30 and today I noticed a hard inquiry from our credit union that has our car loans on hubbys credit report. We are re-affirming both the car loans with them as both cars have equity in them. We are guessing that they got the bk notice today as we got ours today and we are in the same town. Are they allowed to do an inquiry after they have been notified of the bk? They haven't done a hard inquiry since we applied for the last car loan so this is not normal for them.

TS

[Flamingo]

Yes they are allowed - if you read all the fine print in the paperwork you signed when you took out the credit/loan, you'd be surprised what you allowed them to do and when they can do it.

[deafbroke]

Credit unions can cross collateralize loans also so don't be suprised if that happens, meaning you can't sell one car without paying off both loans. Our CU cross collateralized a Credit Card and car loan we had with them.

DB

[southernbelle]

The same thing happened to me. My bank (not credit union) pulled my credit report twice after I filed.

[ThreadsSnapping]

I guess I'm just trying to figure out why they felt the need to pull a hard inquiry now as they haven't done a single inquiry at any other time except when we applied for the loans.

We only have the 2 car loans there, no credit cards, and will be reaffirming them both. We also have no plans to sell either one of them any time soon so the cross collatorization issue is a moot point right now.

I guess it just seems like it could be considered continued collection activity since the automatic stay is in place right now.

TS

[Flamingo]

A creditor can go into your credit reports at any time - as I mentioned in my prevoius posting, if you view all the small print and paperwork you sign when you obtain a credit card or loan, you will find verbiage that with your signature you allow them to do quite a few things....

[southernbelle]

I guess I'm just trying to figure out why they felt the need to pull a hard inquiry now as they haven't done a single inquiry at any other time except when we applied for the loans.

We only have the 2 car loans there, no credit cards, and will be reaffirming them both. We also have no plans to sell either one of them any time soon so the cross collatorization issue is a moot point right now.

I guess it just seems like it could be considered continued collection activity since the automatic stay is in place right now.

TS

I felt the exact same way. My first thought was "What the heck are they looking for?" Like Flamingo said, you'd be amazed of the things we allow them to do when we sign on the dotted line. I like cash and carry. My mom did it (and left this world without owing a sole) and I think I'll try it for a while.

[justplaintired]

I like cash and carry. My mom did it (and left this world without owing a sole) and I think I'll try it for a while.

Oh that's exactly how I feel, leaving this world debt free. Cash and carry is how we live now and I think I actually like it. It feels so weird knowing we have only x amount of money for groceries this week and you know what I like the best, making a list for the week by looking at sales ads. I remember my Mom and Grandma doing that, I like it!! It makes me feel frugal, like I am living on a budget, I am real proud of that. My Mom and Grandma would be proud.

Ofcourse I am already worrying about school registration and how we will pay for it, but they have to accept payments, they can't deny my kids their so called "free" education, so they'll go to school and we will make payments.