Are Multiple Inquiries Purposeful?

Ok... this is either insightful or a great conspiracy theory... but I'm seeing a new trend.

Banks (Suntrust, BB&T) have been littering new customer's files with multiple inquiries.

I got hit with 5 HARD inquiries for 1 checking account with Suntrust (the branch, the main office, the branch again, the main office, the security dept)... all hard.

In fairness, I believe the standard practice is 2 hard inquiries for a new Suntrust checking account (yes 2, 1 at the branch and 1 from their security dept after it's opened)... 2 inquiries for a checking account. What next? Well.. since you asked... there's one worse ;(

JohnM has posted that BB&T will now hit with a hard inquiry for every product you get (checking=1, savings=another one) want a CD? yet another inquiry...

I first thought it was stepped up security on existing customers. But I'm now wondering if it's a slime tactic to artificially lower scores so we'll be less eligible for products from their competitors for a full 12 months. Talk about locking in your customers.

After all, how difficult is it to set up the system where existing customers get hit with only soft inquiries? Not hard at all... yet all we see are hard, score-impacting inquiries.

And we all know the standard CRA response is "inquiries are a matter of record"... thereby guaranteeing that even if we fight it, it'll take months and we will be affected for a while by these time consuming "mistakes"...

I've got to ask why...

Let's take this example: Say you move into town and you start banking with BB&T. You get a checking, savings and maybe even a credit card. Then you start shopping mortgages... your score will artificially be lowered by BB&Ts practices. You'll be offered less attractive offers for the next 12 mos...

You'll get hit worse if you haven't been applying for much... then all of a sudden have 3 new inquiries in a week (out of character behavior)... BAM... large score hit...

Can you imagine the poor sucker (uh.. consumer) who got a checking, savings, cd, credit card... and then applied in your new town for a mortgage.. you could lose 1/8 of a point or more if your profile bordered a score but was lowered. Honestly, this practice could cost a good consumer a lot of money over time... and if they found out after receiving a higher rate.. wow...I'd want to sue... but is it permissible? seems so if you're an existing customer.

this may be the next tactic we face as the system makes us look less credit worthy than we really are...

The impact: we get rejected more or we may be artificially charged more for the credit we really should be...

Nice system.

Another aside to these 'quirks' in the system. I'm noticing Experian has started changing my credit limits that have been reporting for years to "high credit"... even after the credit limits have been reported for years previously. To better protect yourselves, you need to "max" your limits at least once early on.

I truly think the CRAs are getting more aggressive at their attempt to generate lower scores for us all... so keep watching your reports like hawks!