What Do You Do When......

[epiphany]

A collection agency makes a hard inquiry on your credit report? Not that it will do much more damage than has already been done, but I did not authorize this inquiry.

I need to call them later today because they just started calling me a few days ago and I don't want them calling someone else. Should I mention this? If so, what do I say?

TIA,
ep

[keepmine]

Collection activity is a permissible purpose to access your report. They don't need your permission.

[epiphany]

Okay, but I thought they could only do a "soft" pull?

Am I wrong?

Thanks,
ep

[phoenyx]

epiphany, I agree with you. I'm not 100% sure we are right, but I'm about 99% sure.

I pulled my credit reports, and there were hard hits from collection agencies and hard hits from original creditors "checking up" on my credit file, around the same time they charged off my accounts.

I actually mailed the three bureaus a dispute letter, stating that these hard hits needed to be reclassified as soft hits. I clearly stated:

"I did not apply for credit or authorize for any inquiries to be made by these companies. These inquiries should not be listed under the 'Regular Inquiries' section of my credit report that is viewed by others - they should instead be listed under the 'Account Review Inquiries' section."

Depending on who made the hit, I also stated:

"These companies appear to be collection agencies for pre-existing creditors of mine, and made these inquiries without me applying for additional credit or authorizing them to make these inquiries."

or "These companies were pre-existing creditors of mine, and made these inquiries without me applying for additional credit or authorizing them to make these inquiries."

All three bureaus replied back that they had a permissible purpose. As with many letters written to the bureaus, I don't think someone looked at it very carefully or cared. I don't think I'm going to bother fighting it more since they are going to fall of soon, and have a very minimal impact on my score, but I think they're wrong.

As I've read it, a hard hit should only happen when you apply for credit, or ask an existing creditor for additional credit.

[epiphany]

epiphany, I agree with you. I'm not 100% sure we are right, but I'm about 99% sure.

I pulled my credit reports, and there were hard hits from collection agencies and hard hits from original creditors "checking up" on my credit file, around the same time they charged off my accounts.

I actually mailed the three bureaus a dispute letter, stating that these hard hits needed to be reclassified as soft hits. I clearly stated:

"I did not apply for credit or authorize for any inquiries to be made by these companies. These inquiries should not be listed under the 'Regular Inquiries' section of my credit report that is viewed by others - they should instead be listed under the 'Account Review Inquiries' section."

Depending on who made the hit, I also stated:

"These companies appear to be collection agencies for pre-existing creditors of mine, and made these inquiries without me applying for additional credit or authorizing them to make these inquiries."

or "These companies were pre-existing creditors of mine, and made these inquiries without me applying for additional credit or authorizing them to make these inquiries."

All three bureaus replied back that they had a permissible purpose. As with many letters written to the bureaus, I don't think someone looked at it very carefully or cared. I don't think I'm going to bother fighting it more since they are going to fall of soon, and have a very minimal impact on my score, but I think they're wrong.

As I've read it, a hard hit should only happen when you apply for credit, or ask an existing creditor for additional credit.

Thanks for the info. Yeah, we could be wrong but I am getting credit monitoring right now and it specifically explains the hard hit as something I have authorized. I've had soft hits from other collection agencies. Doubt I will do anything about it either but it would be good to know.

ep

[Keebler]

I can tell you that I've had multiple hard pulls from multiple collection agencies appear on my credit report. For some reason the pulls aren't distributed evenly across the bureaus and for this reason I can compare the effect on my score. The one agency where there has been no hard pulls from collection agencies and only a couple of legitimate hard pulls is easily 50 points higher than another bureau where there have been more than a half-dozen hard pulls and duplicate pulls from the same organization.

Most aggravating to me are the hard pulls that appear on the same day or only days apart from the same collection agency. Or the pulls that appear from XYZ Collection Agency while I've gotten a dunning letter from ABC Law Firm. Only after investigating on the Internet do I find that the two companies are different divisions of the same operation.

I've read it's difficult to get them removed and it can only be removed by the originator. Given the fact that they've gotten nothing but grief from me I expect little cooperation or sympathy when I call and ask for them to remove it.

If anyone has an effective method to lose or re-categorize these inquiries, I'd love to hear it.

[keepmine]

Read the FCRA. You'll find no requirement that a creditor/collection agency must code an inquiry in a particular manner. Just says that collection activity is a permissible purpose.

[epiphany]

Read the FCRA. You'll find no requirement that a creditor/collection agency must code an inquiry in a particular manner. Just says that collection activity is a permissible purpose.

Thanks Keep.

ep

[CindyLou]

You can dispute credit inquiries in writing just like you can anything on your credit report. I have sucessfully disputed hard inquirying off my report as a result of collectors snooping!!!

[phoenyx]

You can dispute credit inquiries in writing just like you can anything on your credit report. I have sucessfully disputed hard inquirying off my report as a result of collectors snooping!!!

Did they remove it the first time, or send you back a "permissable purpose" formletter like they did me -- causing you to have to dispute it again? All three bureaus sent me permissable purpose formletters...

[kpapt]

What is a hard inquiry and a soft inquiry? On my online credit report (euqifax 3-in-1 report), it just gives, name, date and type of business of the company making the inquiry. No mention of hard or soft. So how do i know?

[epiphany]

What is a hard inquiry and a soft inquiry? On my online credit report (euqifax 3-in-1 report), it just gives, name, date and type of business of the company making the inquiry. No mention of hard or soft. So how do i know?

Haven't seen the report you are looking at and can't tell you why it doesn't differentiate between the two but a soft inquiry can be made by any creditor (to check up on you because they want to offer you credit, more credit, or just want to check up on you) and does not affect your credit score. A hard inquiry is supposedly something you authorize (usually when you apply for credit or an apartment, etc...) and can affect your credit score.

ep

[phoenyx]

What is a hard inquiry and a soft inquiry? On my online credit report (euqifax 3-in-1 report), it just gives, name, date and type of business of the company making the inquiry. No mention of hard or soft. So how do i know?

Generally on a credit report, bureaus break the inquiries into two sections, even though they don't call them on the report hard or soft inquiries.

Hard inquiries might be referred to as: "Inquiries that may impact your credit rating"; "Requests Viewed By Others"; or, "Regular Inquiries".

Soft inquiries might be referred to as: "Inquiries that do not impact your credit rating"; "Requests Viewed Only By You" or "Promotional Inquiries"; or, "Account Review Inquiries".

If the Equifax 3-in-1 doesn't somehow break these up, that means one of two things. Either you have all of one type of inquiries (which is possible if you haven't applied for credit in the last two years, or less likely if no one has pulled any soft promotional or account review inquiries.) Or, the Equifax 3-in-1 report just lumps them together (which I really doubt, but if is the case, I would call Equifax for my money back as it's a basic part of credit reports.)

[HHM]

The 3 in 1 I get from trans union breaks inquiries down in three categories

Regular (these would be hard inquiries, e.g. where I applied for credit)
Promotional (soft)
Account Review (soft)

You should note, when a creditor pulls your credit report, they do not see the Soft Inquiries, that is a feature only available to the consumer.

(FYI, Citi Cards, the do an account review monthly)

[kpapt]

ok, thanks guys. I guess I don't have any hard inquiries because I did not authorize anybody since my home purchase back in 2000. Anyway the inquiries on my report go back only until Nov 2006 and I was hardly in the US since then.